Grant Letter of Intent Template and Sample

Why Send a Grant LOI

A letter of intent lets you share your idea with a funder without writing a full proposal. It saves time for you and for the funder. A clear LOI demonstrates that your project fits the focus of the funder and the type of support it offers. Some funders call it a “pre-proposal.” Organizations whose LOIs catch the funder’s interest are often invited to submit a full grant proposal.

A letter of intent is also a way to reach out “cold” to a funder that offers good conditions for applicants. The letter helps prospective grantees introduce themselves in the best way.

Grant LOIs have different lengths and types. Some foundations might require them; others not. Either way, sending a letter of intent helps the committee see upfront whether the candidate is a good fit.

What Should Be Described in a Grant LOI?

An applicant writing a letter of inquiry for a grant should keep in mind the main goal – to captivate the committee and get an invitation to start a full grant process.

There is no standard form for a grant LOI, which is why contents and length are optional. But what is recommended to include in a grant LOI is:

• the purpose and goals of the organization
• the amount of financing requested
• the period for which financing is needed
• description of the project that needs financing
• most recent balance sheet and income statement

An additional piece of information that might be included in the grant letter of inquiry is a copy of an IRS determination letter. It is the letter that makes nonprofit organizations exempt from federal income tax and lets investors claim their financing to the project on their annual tax returns.

As well as that, the LOI might include a line-item budget of the project for the financing requested. Such a budget lets group the financial statement by category and shows the comparison between the past financial information and estimated numbers for the future.

Tips on Creating a Great LOI

These tips apply whether you send your grant LOI as an email letter or through an application form provided by the funder. Read them before you start drafting, and come back to them when you proofread. Together they help your letter stay clear, brief and easy for the committee to act on. If you are new to grant writing, they are a good place to start.

1. Keep it brief. Make sure that your letter is brief (preferably, not bigger than one page) and clearly indicates your main grant proposal. However, if the requirement of the organization is more than one page, it should be followed.
2. Use business letter format. Follow the structure of a business letter: put the address of your entity in the top left side of the LOI and the address of the funder beneath it.
3. Name a real person. Learn the names of people in charge of receiving grant LOIs and avoid generic wordings such as “Dear Mr./Mrs.”
4. Follow the funder’s directions. If there are any directions on writing letters of intent provided by the organization, they should be followed strictly. Make sure you understand the expectations of the foundation before drafting a grant LOI. For instance, don’t try to overdo the first impression by attaching materials that are not required by the organization. However, if budgets and other attachments are required in a LOI, they are necessary to include.
5. Research how much to ask for. Learn how much funding you should ask for before putting together the budget by analyzing past awarded projects similar to yours. This will help make necessary adjustments to your project’s budget.
6. Proofread. Before sending a LOI, you should carefully proofread it.
7. Lead with a strong summary. Pay attention to the executive summary in your LOI. It is the part of the letter that goes first and it should be an attention-grabber that will make the readers continue reading.
8. Name the grant. Make sure you specified the name of the grant you are applying for and a short description of your project along with the arguments on how the project will match the interests of the funding organization.
9. Describe the project. Provide details of your project by including main project tasks, names, and titles of key project staff members such as the executive director, target audience, geographic area, statistics, etc.
10. Show what makes you different. Analyze how your programs and services are different than other similar nonprofit companies operating in the same field. Avoid vague claims and define all the outstanding features of your projects that make you look different in the eyes of the funder and prove that you make a difference for your target audience.
11. Tie the budget to your goals. Letters of intent should show how the budgeting will help accomplish the goals of the nonprofit and the impact it expects.
12. Close politely. As a common courtesy, include thanks to the recipient for taking their time and considering your LOI with the appropriate closing statements such as “Sincerely” or “Respectfully”.

Use the LOI template provided on our website to get an idea of what to include in your LOI.

How to Fill out a Letter of Intent for a Grant?

A letter of inquiry for a grant should be crafted thoroughly in several steps. Gather the basics first: your organization’s name, the funder’s contact person, and a short summary of the project. Then work through the five steps below in order.

1. Name and address of the sender and recipient. This first step builds the letter header. First, provide the name of your organization in the top left corner of the letter. Then, include the effective date of the LOI. Beneath it, write down the name and title of the person who represents the funder with regards to giving grants and the address of the funder.
2. Subject. In an email LOI, make sure to write the subject of the LOI. Generally, the name of the grant would be enough.
3. Purpose. Start the letter with a respectful greeting. A line such as “Dear [Name of the person]” works well. The first section of the LOI should tell the purpose of this LOI, the type of nonprofit that seeks funding, and the mission.
4. Goals. The next paragraph is called the statement of need and it should tell how the organization’s goals will be reached with the use of the funding. Here, it is appropriate to share details about the staff members, the people you serve, the geographical area, and the numbers and impact that the nonprofit wants to reach.
5. Closing. After details of the project are provided, it is appropriate to write that the prospective grantee will be honored to submit the full proposal to the funder requesting the application and any additional materials. Finish with a polite sign-off and the name of the head of the organization that seeks funding.

If you need a customized letter of intent for a grant, use our online document builder. Take several minutes of your time to answer several questions and get a ready-made LOI that is easy to download.

Sample Grant Letter of Intent

In this sample, a neighborhood nonprofit asks a private funder for $10,000 to build a community playspace. The letter opens with the request, explains the need, describes the project, and ends with a follow-up plan. Replace the names, dates and contact details with your own.

From: Patrick Smith
Chief Executive Officer
PlayLife Foundation
11 Upper Cibolo Creek Rd,
Boerne, TX 78006
April 4, 2021

To: Bob Loware
Head of El Paso Private Foundation
El Paso, Texas

Dear Mr. Loware,

We are requesting $10,000 (ten thousand dollars) for a community-built playspace in our neighborhood located at 12 Wintergreen St.
El Paso, TX 79915. We believe this request fits under your giving area of the El Paso Area Community Enhancement Program because we pursue the idea of making our community a better place to live, like you do.

Our mission and vision are central to our efforts in generating funds for this playspace. We strive to improve the appearance of our neighborhood, enhance public and especially children safety, and benefit under-served populations. We believe our mission and goals align with the same of your Foundation.

A new, safe, and accessible playspace is needed in our community for the following reasons:

• it offers free activities for under-served families
• it allows increased physical activity, which helps fight childhood obesity—one of the main problems in our community
• it helps reinforce and build social skills when kids play with other children and make new friends, which is even more relevant during the current pandemic.

With this grant, we intend to build a playspace with around ten (10) play activities. This playspace will serve 150 families in the neighborhood. This community-built playspace will employ ten volunteers who will build the structure under the guidance of a certified play equipment installer. We also have collaborations with the S&B Engineers and Constructors company to help us make this dream come true.

I will contact you on April 5, 2021, to confirm the receipt of the letter and will gladly answer all the questions. I can be reached at +155667799 or via email at patrick.s@gmail.com in case you need to get in touch with me. Thank you so much for your attention and participation.

Sincerely,
Patrick Smith

Frequently Asked Questions

A grant letter of intent is short, so most questions are about length, content and how to send it. These answers explain the essential points before you begin drafting your own letter.

General information, not legal or tax advice.

Jennifer M. Settles

Author & Attorney

With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.