How To Write A Grant Acceptance Letter: What Nonprofits Often Miss

Do you remember the last time you received a handwritten thank you? It probably made you feel very appreciated!

When it comes to cultivating funder relationships, communication is key. Sending a funder a gracious grant acceptance letter will help build a foundation for a long-term relationship—which can translate into sustainable funding.

In this article, we will show you how to craft memorable, effective grant acceptance letters so you can begin nurturing relationships with your funders and build a strong network of support.

For grants professionals, finding the time to nurture funder relationships through clear and consistent communication can be difficult with so many competing tasks.
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According to the Center for Effective Philanthropy, lack of communication can lead to distrust between nonprofits and foundations and misunderstandings about nonprofits’ needs. John Esterle of the Whitman Institute states, “Relationships—and the processes involved in building them—too often recede into the background.”

However, with the right strategy, funder communication doesn’t need to be difficult or time consuming. Once you get the hang of it, crafting the perfect grant acceptance letter is a piece of cake!

Here’s a quick overview of how to begin crafting the perfect grant acceptance letter:

• Know Your Audience: Be sure to tailor your note to your specific audience. Take a moment to remind yourself of who you are addressing—an executive director, program officer, grant manager—to help you personalize your letter and develop a deeper connection with your reader.
• Start With a Strong Greeting: Begin with a professional but warm greeting. Orient the funder to the purpose of the note—that you are responding with an acceptance of their award.
• Strike the Right Tone: Communications with a funder should always be professional but warm. This is a partnership and you want to be sure that they feel included in your journey to fulfill your mission while also respecting the professional and serious nature of the relationship.

With a strong introduction and the right tone, you should be ready to start developing the bulk of your letter: communicating the impact of their funding and your gratitude for their support.

The most critical aspect of a grant acceptance letter is showing the funder how much you appreciate their support and what a difference their funding will make to your mission.

Here are some ways you can go about communicating impact and gratitude in your letter:

Express Sincere Thanks

Not only is it important to thank funders for their generous monetary support, but it’s also critical to recognize their partnership in your mission.

Funders give to organizations that share their values and will help contribute to their own goals and objectives. Make sure to thank the funder for being an active participant and leader in this work. You can also highlight how their own activities have inspired your organization and that you are excited to deepen your partnership and strengthen your field.

Your gratitude should feel authentic. This will not only make the funder feel appreciated for their contribution, but it will also make them feel like they are part of your community and that they play a vital role in your nonprofit’s work.

Detail the Project’s Impact

In addition to thanking the funder and exhibiting your gratitude, be sure to also highlight the impact their grant award will have on the community that you serve.

This doesn’t have to be complex. For example, you can simply share the number of participants your organization will be able to serve with their support and what sort of difference it will make in their lives.

Impact can be measured in various ways, through quantitative measures, qualitative measures, and mixed-method approaches. When highlighting your project’s impact, try to use both qualitative and quantitative metrics. This way you can show the scope of your project and how many people you reach, while also lifting up the nuanced stories and specific outcomes of program participants.

Sharing Success Stories and Visuals

A great way to make your grant acceptance letter more engaging is to leverage storytelling and visuals within it.

For example, participant photos and infographics can catch your reader’s eye and make the information more digestible.

Take for example the YMCA of Greater Boston. When communicating impact in their annual report, they used various media as well as quantitative data to highlight the difference they are making. In the example below, they used a short inspiring video embedded in the report to tell the story of their participants’ success while also highlighting the number of individuals they served.

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The YMCA of Greater Boston utilizes visuals, success stories, and data to illustrate their organization’s impact.

While this example is not a grant acceptance letter, you can leverage the same strategies to communicate impact to funders.

If you have existing visuals (videos, photos, infographics) or other collateral you can incorporate into the letter—use them! If you have the time and capacity, consider including a photo depicting program activities or design an eye-catching graphic to highlight the impact of your work.

The intention is to help your organization stand out to the funder. The funder may even take the opportunity to share your graphics on their social media and web pages. This helps amplify your story and allows you to reach a broader audience!

Understanding how to communicate impact, express gratitude, and capture the funder’s interest is crucial—but the engagement doesn’t end there!

Deepening funder relationships is vital for grant seekers. According to Rachel Grusin, Project Coordinator for the Legal Society of San Diego:
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“Moving beyond basic interactions to more sophisticated engagement is pivotal for a seasoned grant team looking to deepen their relationships with funders and elevate their strategy. Move beyond generic updates and reports. Tailor your communication to each funder's specific interests. Share stories and data that resonate with their goals. Personalized communication shows that you value the relationship and understand their perspective.”

A grant acceptance letter is not just about building the foundation for a productive relationship with your funder—it is about enhancing the relationship so that you can move forward as partners. With the right strategy, you can manage expectations, set up a cadence for engagement, and invite further collaboration. Here’s how:

Clarify Details and Expectations

Many grants have complex requirements and guidelines to follow, and it is always best to obtain clarification and set expectations at the onset instead of waiting for your first report or grant renewal.

Some funder’s may request that you sign a grant agreement where they directly outline the stipulations of the reward and what is expected of the relationship going forward, which can include:

• Specific financial reporting or spend down requirements;
• Cadence for reporting, such as required mid-year and end-of-year reports with explicit deadlines and directions; and
• Required site-visits and other in-person or virtual meetings with the funders.

Having direct requirements and guidelines set out by the foundation is helpful for post-award compliance, providing you with a roadmap of how to manage the grant and engage with the funder going forward.

You can also use your letter to ask about the funder’s communication preferences. Some might prefer only written communication—emails or even handwritten letters. Others might want to stay very connected, and will readily hop on a phone call with you, meet in person, or even invite you and your team to meet in their office.

Maintain Engagement With Regular Updates and Reports

Reporting on outcomes and project impact are a vital part of any grant cycle.

Some funders require very specific reports with in-depth questions, outputs, and outcomes while others only ask for brief one-pagers or a short meeting to gain insight into the results of the grant period.

Even if the funder does not have any specific reporting requirements, you should still submit a report and provide updates throughout the grant period to keep them engaged and aware of the impact their dollars are making.

These reports should include:

• Participant stories and qualitative information about your project or program;
• Outcomes or outputs associated with your grant activities;
• Lessons learned from the grant period; and
• Plans for the future.

Maintaining consistent engagement will keep your nonprofit at the top of the funder’s mind. It will also help give you an additional edge over other organizations when it comes time to renew your grant. You can point to the consistent updates as proof of the program’s efficacy.

To learn more about developing strong grant reports, check out: 10 Ways to Show Impact in Grant Reports—And Why It's Important.

Invite Further Collaboration

The best funders—and best nonprofits—will view their relationships as collaborative partnerships.

Encouraging continued collaboration with a funder can signal that you are willing to invest time and labor into the future of the relationship and work in tandem to achieve success.

By inviting further collaboration you can open the door to a variety of new opportunities with the funder, including:

• Partnering to receive professional development or capacity building services alongside the funder or led by the funder
• Joining a local coalition and collaborative that shares a common mission or objective
• Advocating for local and national policies that will address the root causes of key challenges impacting those you serve

Need some inspiration on how to drive funder engagement around increased collaboration?

Check out Nonprofit Community Partnerships: A Success Guide for 2024. While this guide focuses more broadly on community partnerships, it provides tangible steps on how to nurture relationships with external partners and how to effectively work with others to achieve your goals.

Developing a strong grant acceptance letter will help build trust, strengthen your relationship, and potentially lead to increased or additional funding.

When crafting a letter remember to:

• Engage the reader with a strong introduction
• Tailor your language to the specific funder
• Illustrate project impact
• Clarify expectations
• Welcome continued collaboration

The grant cycle is a gateway to successful relationships with funders, helping strengthen your overall network and position your organization for long-term sustainability and growth. To find grants that align with your nonprofit’s needs, give Instrumentl a try and see how it works firsthand to level-up your fundraising efforts. Start your 14-day free trial today!