So you’ve identified your ideal funding opportunity and have carefully read through the guidelines to determine what your next steps will be (great job!). For this foundation, the opportunity requires the submission of a grant letter of intent (an LOI) as opposed to a traditional grant application.
Now you’re asking yourself: what exactly is a letter of intent, and what does this mean for me as I create my grant writing plan?
In this post, you will learn what a letter of intent for nonprofits should be, industry standards in creating one, and a collection of templates you can utilize in the future.
So let’s dive in!
A grant letter of intent (LOI), as the name suggests, is a letter expressing your intent to apply for a grant. It's not a comprehensive grant proposal but rather a concise introduction to your organization and project.
An LOI serves as an initial brief communication with potential funders by outlining your nonprofit’s interest in applying for a grant.
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However, the term "Letter of Intent" can also be used to refer to a document submitted along with a grant application, outlining your intention to use the grant funds for a specific purpose or project. So, its specific meaning can depend on the grantmaker's guidelines.
While an LOI is not as detailed as a full grant proposal, it plays a vital role in capturing the funder's attention and determining whether your project aligns with their priorities.
A grant letter of intent sets the stage for your entire engagement with funders. Let's explore why an LOI is so crucial for your grant-seeking endeavors.
An LOI serves as your organization's first introduction to potential funders.
It's your opportunity to create a compelling initial impression and set the tone for the entire grant application process. Funders often receive numerous applications, and your LOI must capture their attention and demonstrate your seriousness about the opportunity.
Grantors receive numerous applications, and LOIs help them quickly assess whether a project aligns with their mission and goals.
Your LOI provides a brief overview that allows grantors to quickly evaluate whether your project aligns with their priorities.
Submitting a well-crafted LOI also demonstrates your organization's professionalism and seriousness.
It's a vehicle for building relationships with potential funders.
This early engagement can be the foundation for a positive and enduring partnership with the grantor.
Now that we've established the importance of an LOI, let's dive deeper into what sets it apart from other documents in the grant application process.
Because we often use the abbreviation, “LOI”, a grant letter of intent is often used interchangeably with “letter of inquiry” and “letter of interest.”
However, they are all subtly different from each other.
A well-structured LOI includes several key sections, each with a specific purpose. Let's break down the essential components of a grant letter of intent:
In the "Introduction" section, you introduce your nonprofit organization to the potential funder.
This initial part of your grant letter of intent serves as a brief overview of your nonprofit.
The "Project Overview" section is all about addressing the problem or needs you're targeting, explaining your strategy to overcome them, and discussing the positive outcomes you anticipate.
Get specific about the financial aspects of your project. Provide details about the overall project cost, the exact amount you're seeking, and how you plan to allocate these funds across different project components.
The "Closing" section is where you wrap up your LOI with courtesy and professionalism. Focus on leaving a positive impression and building a potential future partnership.
With a clear understanding of the essential components, let's explore how you can craft a compelling grant letter of intent for your next grant application.
Now that you know what an LOI should include, let's dive into the process of writing a compelling and effective grant letter of intent. Follow these steps to ensure your LOI stands out and piques the interest of potential funders.
Know Your Audience: Understand your potential funders. Research their mission, priorities, and guidelines. You can use grant databases like Instrumentl to research grant opportunities and the specific funders that offer them.
Set Clear Objectives: Define your objectives for the LOI. What do you want to achieve with it? Are you aiming to secure an invitation for a full proposal, or are you simply introducing your organization? Be clear about your goals from the start.
Thoroughly Understand the Grant Opportunity: Your journey to crafting an effective Letter of Intent (LOI) begins with thorough research.
Study the grantor's guidelines and criteria to gain a deep understanding of what they are looking for in potential grantees and ensure that your nonprofit and project align with their priorities. This will allow you to tailor your LOI to align precisely with what the grantor is looking for.
Instrumentl’s 990 tool can help you gain insight into a funder’s past grants, giving priorities, and funding history.
Contact the Grantor (if Appropriate): If you have questions or need clarifications about the grant opportunity, don't hesitate to reach out to the grantor.
Doing this can clarify any uncertainties and enable you to fine-tune your grant letter of intent, making it even more appealing to the grantor. This personalized touch shows your genuine interest and proactive approach and can significantly enhance your chances of success in the grant application process.
Start With a Strong Introduction: Your LOI serves as the initial introduction of your organization and your project to potential funders. That’s why it is crucial to craft a compelling opening for your LOI that introduces your organization and the essence of your project.
Make sure it grabs the funder's attention right from the start. An engaging introduction sets the tone for the entire document, making the funder eager to learn more about your project.
Keep it Concise: Remember, an LOI is a brief document. Be clear, concise, and to the point, and avoid unnecessary jargon or verbosity. You don’t want your potential funder to lose interest in your mission. Ensure your LOI is straight to the point and is able to convey your message succinctly.
Highlight Alignment: Funders are not just interested in supporting projects; they want to support projects that align with their own priorities and values.
Use your LOI as an opportunity to clearly articulate how your project aligns with the grantor's priorities. Use specific language and examples to demonstrate this connection.
Reference the Funder/Foundation: Mention the funder or foundation explicitly. Make specific references to their mission, priorities, or previous work that aligns with your project.
Highlighting their previous contributions or initiatives that relate to your work shows that you've taken the time to understand their values and goals. This level of personalization not only demonstrates your commitment but also connects your project directly to their mission.
Show Impact: While it's essential to describe your project's objectives and activities, remember to focus on the outcomes.
Use data, real-life stories, and evidence to illustrate the positive changes your project can achieve. Paint a vivid picture of the transformations your initiative will bring about in the community or field. Funders are more likely to support projects that demonstrate a clear and meaningful impact.
Don't rush: Take the time to review and revise your LOI. Ensure that it's error-free and effectively conveys your organization's mission and your project's potential.
Stay Proactive: After submitting your LOI, don't sit back and wait. If you don't receive a response within a reasonable timeframe, consider following up to express your continued interest.
Now that you have a comprehensive guide on crafting an LOI, let's dive into what an effective grant letter of intent looks like.
The following real-world letter of intent grant samples will provide you with insights into how different organizations present their intent to apply for grants.
UMASS Amherst does an excellent job of breaking down each component of a grant letter of intent, including the importance of background research and techniques you can use while writing.
Each component of the letter of intent is broken down but in greater depth in terms of the construction of each section. Of note, they also emphasize the importance of already having a well-thought-out proposal in mind before beginning to write a letter of intent.
This overview from Northwestern University is geared toward research field-oriented proposals and provides succinct guidance for what the body paragraphs should look like for a letter of intent in that category.
Keep in mind that research grant opportunities and the affiliated LOIs usually require very specific instructions due to the nature of the work.
This is a great example of what it looks like when a foundation sets specific guidelines and criteria for a letter of intent for nonprofits. The Anschutz Family Foundation provides four very well-defined areas that they would like included: an overview of your organization, an overview of what you do, financial information, and the amount of the request you are making.
Let’s put all we’ve covered into a solid template you can refer to and keep on hand to organize your thoughts each time you start the letter of intent process!
A grant letter of intent should be between 1-3 pages (without attachments), and/or should follow the exact guidelines given by the funder.
LOIs are also one of the most popular ways that you can introduce your mission to outside stakeholders.
Set the tone for building successful relationships with grant funders by writing an effective Letter of Intent.
Now that you’ve learned about LOIs, learn how to decipher and adhere to grant application guidelines.
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