First impressions are important, and how you introduce your nonprofit to a funder for the first time is critical. If you are in the throes of seeking funding for your programs, you have likely come across the requirements for putting together a letter of inquiry, also known as an LOI.
This article will review what a letter of inquiry is and will outline tips for you to draft a successful letter. We will also provide letter of inquiry examples for you to use as a framework.
Let’s dig in.
The letter of inquiry to a foundation is the first impression a funder will get of your organization. It gives them a personalized inside look at your programming, your causes, and your mission. It also helps them to determine if, on the surface, you are a good fit for their funding.
Just as your nonprofit is beholden to your Board and is operating for the sake of your target populations, the funders also answer to donors and their Boards and are required to fund organizations only within their prescribed scope of service.
Many foundations and funders require a two-page LOI before accepting a full application so they can save time for everyone. Even though it may seem like an extra step in an already cumbersome process, the LOI is actually something to be grateful for. If your nonprofit is not a good fit, it saves you time you could have otherwise been spending on worthwhile grant leads. It also allows the funder to save time in reviewing and only inviting strong candidates aligned with their mission.
If your LOI is deemed in alignment, the foundation may ask you to send in a full program application. In some cases, they may provide funding just based on your LOI. Although the letter of inquiry for grant funding is shorter and less intensive than the full application, it is equally as important. As a nonprofit leader, you should become familiar with how to write a letter of inquiry for grant funding.
The letter of inquiry format outlines the specifics of your organization and programming that you are seeking funding for. In some instances, the funder may tell you exactly what they want to see in your letter, section-by-section. You should follow exactly what the funder prescribes if that is the case. In other instances, you may be asked to supply an LOI with no additional context provided. We’ll provide letter of inquiry examples that you can use as a framework later in this article.
In a standard LOI, there should be an introductory paragraph with the basic information the funder needs to know: your name, your role, the organization’s name, the program you are requesting funding for, and how much you are requesting.
The body paragraphs are comprised of the in-depth ‘nitty-gritty’ of your organization and your programming. Within these body paragraphs, you should also explain the need for your program, what problem you are addressing, and for whom (your target population).
You will need to explain how your program will solve or address the problem you have identified, including your proposed measurable objectives and the activities you will undertake to achieve those objectives. It would also be worthwhile to give a brief overview of why you need this funding and an explanation of whether or not the program is being funded from other sources.
Lastly, the LOI will include a summary paragraph to close out. You can see how all of these pieces come together in the letter of inquiry examples at the end of this article.
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The letter of inquiry is your first impression for a funder. It’s possible that your letter of inquiry could be so compelling that the funder decides to write you a check without additional documentation. Here we outline three steps to take to write a letter of inquiry that stands out.
You should brainstorm a plan for your funding request before reaching out to anyone. It is a good idea to put together a logic model of your program to outline all of the elements involved. You’ll need to be succinct but impactful, so spend some time thinking about what that will look like.
Research the funder before reaching out. Make sure that you understand the mission and initiatives that the funding organization operates by and whether your work aligns with theirs.
You also want to research who at the organization you will be addressing the letter to. You may find the Key People section of that funder profile helpful on Instrumentl.
You have a project that meets all of the grant criteria. You know your organization inside and out and are proud and excited about the work you are doing. All of that is important, but the funder wants to know how you fit their needs and goals.
When writing your letter of inquiry, keep the funder at the front of your mind. You are making your first impression and trying to build a connection with them. You’ll have an opportunity to dive deeper to your own nonprofit mission in subsequent documents; however, you only have this one shot to really articulate that you know what they need and you plan to be the nonprofit to do it!
Details and operations frameworks will be necessary to articulate later in your grant writing process. For the letter of inquiry, focus on the stories or examples of your work that will leave the funder wanting to know more about you.
Do you have compelling data that is possibly a bit shocking? Do you have a story that speaks to human emotion in some way? Craft your letter to include these points of impact in a way that is succinct and leaves the funder with additional questions and the desire to reach out and learn more about the work you have done.
Be certain your letter is written well and that you are following any of the posted guidelines for reaching out to the funder. You want to ensure that your letter structure and presentation is professional and appropriate so any formatting or syntax errors do not detract from your message.
There are a few other actions you can actively take to ensure that your letter sets you apart from the dozens or hundreds of others that cross the desk of the funder.
Below are tips for how to write an effective letter of inquiry, specifically within the introduction, body, and conclusion sections along with some tips on what to avoid.
Provide in-depth information. This is where you will describe your mission and vision and other identifying details of your nonprofit. When explaining your organization, give specifics about your target populations and your geographic scope of services.
The body paragraphs should also explain the need or problem you are addressing with your programming. Be sure to explain how you know this need exists and what you see as your solution for this need.
Give real-life examples. When you explain the impact your organization makes in its programming, give examples with actual numbers. Let the funders see the measurable impact you can make.
An example of showcasing the impact of potential funding support can be framing some of your overall outcomes. Take these statistics from Partners in Health as an example:
These statistics tell a compelling story of the impact of funding support for their programs.
Show your growth potential. Let the funders know how you can expand on the above impact with additional funding and what that means for your target population. Be specific in what activities or outcomes the funding will directly support. Consider the following example:
With our current revenue levels, we have been able to supply 1,200 weekend meal backpacks. Our community data show that there are an additional 2,400 children that could benefit from this program. The additional funds provided by Foundation would allow us to close that gap and double our existing impact by providing 1,200 additional weekend meal backpacks.
Show appreciation. Of course, you will want to give thanks to the funder for the opportunity to propose your program in the letter of inquiry for grant funding.
Provide your availability. The most important element you should include in the conclusion paragraph is an open invitation for the funder to contact you for more information, as needed. Include your contact information and the hours you may be available.
There are several mistakes you want to avoid making in the LOI, as well.
Don’t make assumptions. One fatal mistake would be to assume the funder already knows about your organization. That could certainly be the case, but when you are introducing your organization and programming in a solicitation for funding, you should consider that whoever is reading your letter knows nothing about your organization and is not a subject matter expert in the area of your programming.
It is your responsibility via this LOI to fill them in on what they need to know.
Don’t send cookie cutter LOIs. Seeking funding can feel repetitive and weighty, and adding tailoring to the process exacerbates that feeling. However, you don’t want to send the same generic LOI to different funders, and here is why: funder’s want to connect with their grantees and ensure that the program they give money to reinforces their mission.
That’s why it is important to reflect the funder’s values in your LOI and showcase just how well your programming is in sync with their dollars. We write more about matching grant applications to funder interests here.
Resist the urge to include everything you have. Depending on what the funder is asking for, don’t attempt to send everything about your organization that you have with the letter. In general, this means no flyers, no brochures, and no media mentions. Chances are if you include them, they won’t be looked at and will end up in the back of a filing cabinet or worse, the trash. Save your material for when you need it and for the LOI, trust in the power of your words.
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Here is a sample letter of inquiry template you can use as a starting ground for your own organization. Sample Letter of Inquiry 1 is the overall letter of inquiry template, and Sample Letter of Inquiry 2 shows you how you might use it.
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In this article, we covered how to write a letter of inquiry for grant funding. When you write and send a letter of inquiry, you have an opportunity to make your nonprofit stand out in a pool of potential grant applicants.
Use the information and tips we have provided as you write your letter of inquiry. You learned what a LOI is, how it is typically laid out, tips for writing a LOI, and examples of completed letters of inquiry to use as a framework.
If you’re looking for more grant writing training, check out our free grant writing workshops here.
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