Chapter 4: Letters of Inquiry

Writing a grant proposal is hard work. And some are very hard work. One of the worst feelings is pouring yourself into a grant and clicking that submit button only to be told that the funder is not the right fit for your project or program. Thus, a Letter of Inquiry (LOI) is a key component in the realm of grant-seeking, serving as an initial link between potential funders and those seeking funding. This preliminary communication tool is designed to gauge a funder's interest in a proposed project or program, saving time and streamlining the grant application process for both parties. You don’t want to spend hours developing and writing a proposal for a funder who doesn’t line up with your cause and has no chance of funding your project.

The purpose of an LOI extends beyond mere introduction; it boils down the mission of the applying organization, the objectives of the project seeking funding, and notably, how the initiative aligns with the funder's goals and priorities. It should be brief, but despite its length, an LOI should convey the significance, anticipated outcomes, and funding requirements of the project with clarity and impact. This strategic summary not only serves to inform but also to engage the funder’s interest, setting the groundwork for a potential partnership.

The advantages of utilizing an LOI in the grant-seeking process are many. For applicants, the LOI represents a time-efficient approach to present their case without the extensive resource investment typically required for a full grant proposal. This preliminary step offers an opportunity for early feedback, potentially saving applicants from pursuing unsuitable funding avenues. Funders benefit from this arrangement by being able to sift through a larger volume of inquiries, identifying those proposals that best match their funding objectives with greater ease. Moreover, an LOI offers the chance to make a compelling first impression, a critical aspect in the competitive realm of grant funding.

Crafting an LOI poses its unique set of challenges, however. The constrained format demands exceptional clarity and conciseness to distill complex project ideas into a compelling narrative that resonates with the funder’s interests. The high volume of LOIs received by funders also means that standing out from the crowd requires not only a clear alignment with the funder’s goals but also a demonstration of the project’s unique value and potential for impact.

As such, mastering the art of writing an effective LOI is a valuable skill for any grant seeker, laying the foundation for successful funding relationships and the realization of impactful projects.

The Usual Structure of a Letter of Inquiry

Even though the content is going to vary based on what the funder wants, there is a general format that you can start with. You want to be appropriately formal. Address the name of the individual at the foundation who will be receiving the letter personally and professionally. You want the funders to know that you are not simply blanketing the whole world with inquiry letters, but have actually put time into researching their organization and the appropriateness of our request. Avoid “Dear Sir/Ma’am” or “To Whom It May Concern” if at all possible.

An LOI should continue with an introductory paragraph that includes essential information such as your name, position, organization, the program seeking funding, and the amount requested. This part should be brief. It should also be able to stand alone. If a reviewer has no time to do anything but read the first paragraph of each request, they should be able to figure out who you are, what you do, and what you want right away. Be clear and concise and don’t waste their time.

Following this, the body paragraphs should dive into the specifics of your program - the need it addresses, the target demographic, and how it plans to tackle the identified problem through measurable objectives and planned activities.

‍To wrap up, the conclusion should reiterate your gratitude for the funder’s consideration and express your openness to further discussions, providing your contact details for easy correspondence.

So, Can I Just Use That One?

Probably not, because the real answer to what an LOI should contain is that it should contain exactly what the funder asks for it to contain. Most funders will tell you what it is that they want, and it may not be exactly what is in the sample. It is true that generally, an LOI will concisely outline your project proposal, its objectives, and its anticipated outcomes, giving funders a clear picture of how your mission aligns with theirs. Different funders ask for different specific details, however, and you don’t want them thinking that you sent them a form letter.

The Commonwealth Fund, for example, asks that the LOI contain the following:

• Statement of problem and purpose of grant
• Description of project’s targeted audience
• Project design, including schedule and work plan
• Description of project’s expected outcomes
• Estimated total project cost and total amount requested
• Organization staffing and financial resources

They even provide a sample letter for applicants to use as an example. The Charles Stewart Mott Foundation, on the other hand, doesn’t even require a letter exactly. Their website contains a form with a space to provide a short description of your “project, why it is needed, whom it will serve, and what will be accomplished during a specific period of time.” Similarly, the Anschutz Family Foundation asks for a copy of your IRS 501 (c)(3) documentation, as well as:

• An overview of what your organization does, including:

• Programs and services
• Number served
• Geographic focus
• Target and beneficiary populations
• Current funding sources already secured, and those being approached

• Your request of the Anschutz Family Foundation

Notice that even though each of these may seem like a generic way for them to ask for a general description of your project and a plea for money, and it may feel like it would be easier to just write one letter to send to everyone, this would be a mistake. Many agencies, foundations, charities and donors are bogged down by the number of requests that they receive. There are so many great organizations and projects out there, but they can’t possibly fund them all. Thus, they may be looking for a reason to put letters in the “sorry, but no” pile, and not including information that they had asked for may just be that reason.  

Crafting a Standout Letter of Inquiry in Three Steps

There are two things that you can count on when it comes to how funders decide which proposals to fund. First, they want to partner with organizations that align with their mission. Funders, whether they are foundations, corporations, government entities, or individual philanthropists, often have a vision that extends beyond the simple act of giving money. Their ultimate objective is to catalyze positive change within communities and address issues that align with their core values and mission. To achieve this, they seek to establish partnerships with nonprofit organizations that demonstrate not only a shared commitment to these goals but also the capability and strategic approach to make a meaningful impact.

Funders are increasingly looking for organizations that do more than propose worthwhile projects; they are looking for partners who can articulate a clear vision of how a project addresses community needs, the specific outcomes they aim to achieve, and how these outcomes contribute to broader societal change. This requires organizations to have a deep understanding of the issues at hand, a strong connection to the communities they serve, and an evidence-based approach to their work.

The second thing you can be sure of is that they want to be inspired by what the applicant does and is proposing.  Funders, in their quest to make a meaningful impact through their contributions, are not just looking for projects that align with their goals—they are seeking inspiration. This desire for inspiration stems from a deep-rooted belief in the potential for innovative and passionate endeavors to instigate significant change. When an applicant presents a proposal, what funders are often hoping to find is a narrative that not only meets the criteria for funding but also moves them, offering a vision that is both compelling and transformative.

The inspiration funders seek can manifest in various forms. It might be found in the novelty of the approach an organization is proposing, where a fresh perspective on an old problem sparks interest and excitement. Innovation, especially solutions that creatively address complex challenges, can be a powerful source of inspiration, suggesting new pathways for impact that had previously been unexplored.

Equally, inspiration can come from the passion and commitment exhibited by the applicants. Funders are drawn to organizations that demonstrate a deep commitment to their cause, as this passion often translates into perseverance and resilience in the face of obstacles. An applicant that communicates a clear, passionate vision for their project can inspire funders to invest not just in the idea, but in the people behind it, trusting in their dedication to bring about real change.

You might be wondering how to do this, and the truth is that a lot of it boils down to practice. There are some guidelines to follow that will get you started.

Thoroughly Understand the Grant Opportunity 

Your journey to crafting an effective Letter of Intent (LOI) begins with a foundation of thorough research and preparation. Diving deep into the grantor's guidelines, criteria, and overall mission is crucial to understanding what they seek in potential grantees. This initial step ensures that your nonprofit and its proposed project not only align with the grantor's priorities but also stand out by precisely addressing their specific interests. Tailoring your LOI to mirror the funder's objectives involves organizing your program's logic model to present its components concisely and clearly, leaving a lasting impression on the reader.

Moreover, establishing direct contact with the grantor, when appropriate, can be invaluable. Reaching out for clarifications or further insights about the grant opportunity signifies your genuine interest and proactive approach. This step can dispel any uncertainties and allow you to refine your LOI, ensuring it resonates more strongly with the grantor's expectations. Such personalized engagement demonstrates your commitment to aligning with the funder’s goals and can significantly bolster your application's appeal.

Central to your LOI should be a personalized approach that places the funder's interests at the forefront. While it's important to highlight your organization's strengths and achievements, the core of your message must illustrate how your project aligns with the funder's vision for change. Integrating data and compelling narratives to showcase the real-world impact of your initiative is key. Funders are driven by the desire to see their investments lead to meaningful, tangible change. By vividly depicting the difference your project can make through both quantitative evidence and storytelling, you underscore your dedication to bringing about significant improvements in your community or field.

The process of writing a compelling LOI that captures the attention of potential funders is multifaceted. It requires a blend of strategic research, personalized communication, and a clear demonstration of impact. By meticulously preparing your proposal, engaging with funders to understand their goals, and emphasizing how your project aligns with their vision, you set the stage for a successful grant application. This approach not only increases your chances of securing the needed funds but also establishes the foundation for a fruitful partnership with your funder, aimed at achieving lasting positive change.

Personalize your LOI

Personalizing your approach when crafting an LOI is necessary in order to capture the attention and support of potential funders. It’s important to prioritize the funder’s interests over a broad presentation of your organization’s merits. Your LOI should clearly articulate how your project aligns with the funder’s goals, demonstrating a deep understanding of their vision and how your initiative contributes to their objectives. This alignment signifies not just a request for funding but a partnership towards a common goal.

Showcasing the real-world impact of your project is fundamental here. Funders are keen to see the tangible results of their investments. By incorporating data and compelling narratives within your LOI, you illustrate the significant difference your project can make. These stories and statistics bring your project to life, showcasing your commitment to creating meaningful change. Such evidence speaks volumes, highlighting the potential success and reach of your initiative in ways that resonate with funders’ desires to contribute to substantial, positive transformations.

Making explicit references to the funder or foundation within your LOI adds another layer of personalization. Mention their mission, priorities, or any previous projects similar to yours, showing that you have invested time in understanding their specific interests and how they intersect with your project. Highlighting how their past initiatives relate to your proposed work demonstrates not only your thorough preparation but also positions your project as a continuation or complement to their ongoing mission.

Lastly, emphasizing the anticipated outcomes of your project is as crucial as detailing its objectives and activities. Funders are drawn to projects that offer a clear vision of their impact. By using real-life stories, data, and evidence to depict the positive changes your project aims to achieve, you paint a vivid picture of the potential transformations. This focus on outcomes rather than just activities underscores the significance of your project, making it more appealing to funders looking to make a meaningful difference.

Review and Revise Before Submission

When preparing your Letter of Intent (LOI), it's crucial to allow yourself enough time not just to write but to thoroughly review and revise your document. This meticulous process ensures that your LOI is free of errors and effectively communicates both your organization's mission and the significant potential of your project. Precision in articulation and a clear alignment with the funder's goals can significantly increase your chances of capturing their interest. An LOI that is well-crafted and error-free speaks volumes about your organization's professionalism and dedication to your cause.

After you've submitted your LOI, it's important not to fall into a passive waiting game. Instead, adopting a proactive approach can make a difference. If you haven't heard back within a reasonable period, a polite follow-up can be a strategic move. This not only shows your genuine interest and enthusiasm for the project but also your commitment to pursuing a partnership with the funder. A thoughtful follow-up can keep your proposal at the forefront of the funder's mind and demonstrate your proactive nature, potentially giving you an edge in the competitive grant-seeking process.

With a solid grasp on crafting an impactful LOI, including the nuances of preparation, submission, and follow-up, you're well-equipped to develop a letter that not only stands out to funders but also lays the foundation for a fruitful partnership. This understanding is necessary for navigating the initial stages of the funding process successfully, setting the stage for your organization's projects and initiatives to thrive.

Figure 4.1. Sample LOI

Logic Models

Logic models serve as visual tools that map out the connection between the activities of a program and its anticipated outcomes, illustrating the cause-and-effect relationship between resources utilized, actions taken, and the changes these efforts are expected to produce. These models, sometimes referred to as program theories or theories of change, detail the rationale behind each chosen activity and how it contributes to achieving the program's goals.

These are not generally required, especially at the LOI stage, however incorporating a logic model into a Letter of Intent (LOI) or grant proposal can significantly enhance the application's clarity and effectiveness for several reasons. A logic model visually outlines how your program intends to achieve its goals, linking activities to outcomes in a straightforward, easy-to-understand manner. This clarity is invaluable in grant proposals, where you need to quickly and effectively communicate complex information to funders who may not be familiar with the specifics of your project.

A logic model can also help align your project's objectives with the funder's priorities by clearly showing how the anticipated outcomes of your project contribute to broader goals or issues the funder cares about. This alignment is often a critical deciding factor in the funding decision process.

The structure of a logic model is flexible; it need not follow a linear progression if the program's logic is more dynamic. While flow charts are commonly used to represent these models, various formats like networks, concept maps, or wheels can also effectively convey the relationships within a program. Key components to include in any logic model are:

• Inputs: These are the resources, including personnel and material efforts, that fuel the program, along with any constraints that might act as barriers.
• Activities: The specific actions undertaken with the resources to drive the desired change.
• Outputs: Tangible evidence that the planned activities were executed, such as event attendance figures or the number of volunteers trained.
• Outcomes: The significant changes or results that stem from the program's activities.

Logic models vary in complexity to suit the program's scope, offering a macro view rather than an exhaustive detail of every element. A well-crafted model succinctly captures the essential components of an initiative, making it accessible and understandable to stakeholders without oversimplifying the program's strategic nuances. Some are large and complex, even necessitating nested models inside of the main model. Some are much more simple and straightforward (Fig 4.2). For the purposes of an LOI and the required brevity, you will want to employ a simple version.

Figure 4.2. Sample Logic Model and LOI

https://meta.wikimedia.org/wiki/Learning_and_Evaluation/Logic_models#/media/File:Wiki_exampled_Logic_Model.png

Conclusion

Writing a grant proposal is undoubtedly a demanding task, and facing rejection after investing significant effort can be disheartening. To mitigate this, a Letter of Inquiry (LOI) serves as a crucial tool in the grant-seeking process, acting as a preliminary communication that helps both applicants and funders determine mutual alignment. By succinctly conveying the project's mission, objectives, and alignment with the funder's goals, an LOI saves valuable time and resources, ensuring that full proposals are only developed for genuinely promising opportunities.

The purpose of an LOI extends beyond a simple introduction; it sets the stage for a potential partnership by effectively communicating the project's significance, anticipated outcomes, and funding requirements. This approach benefits both parties: applicants can avoid wasting time on unsuitable opportunities, and funders can efficiently sift through numerous requests to identify those that best match their priorities.

Crafting a standout LOI involves clear, concise communication and a deep understanding of the funder's mission. By addressing the funder directly and tailoring the letter to reflect the funder's specific interests, applicants can make a compelling case for their project. This initial step, though challenging, is a valuable skill for grant seekers, laying the groundwork for successful funding relationships and impactful projects.

Figure 4.3. Sample LOI 2

References

Commonwealth Fund. (n.d.). Letter of inquiry process. The Commonwealth Fund. Retrieved May 23, 2024, from https://www.commonwealthfund.org/letter-inquiry-process

Anschutz Family Foundation. (n.d.). Our grantmaking: Letter of inquiry. Anschutz Family Foundation. Retrieved May 23, 2024, from https://anschutzfamilyfoundation.org/our-grantmaking/letter-of-inquiry/

Charles Stewart Mott Foundation. (n.d.). Letter of inquiry. Mott Foundation. Retrieved May 23, 2024, from https://www.mott.org/letter-of-inquiry/

Michigan Department of Labor and Economic Opportunity. (n.d.). Developing a logic model guide. Michigan.gov. Retrieved May 23, 2024, from https://www.michigan.gov/-/media/Project/Websites/leo/Folder20/Developing_a_Logic_Model_Guidex.pdf?rev=d4c120d3afc248e98404450806b4db30

Northwestern University Foundation Relations. (n.d.). Grant writing guide: Proposal resources: Letter of inquiry. Northwestern University. Retrieved May 23, 2024, from https://www.northwestern.edu/foundationrelations/grant-writing-guide/proposal-resources/letter-of-inquiry/

Utah Valley University Office of Sponsored Programs. (n.d.). Writing a foundation request. Utah Valley University. Retrieved May 23, 2024, from https://www.uvu.edu/osp/docs/writing-a-foundation-request.pdf