What Is a Letter of Inquiry? (LOI Guide for Grant Funding)
Letter of Inquiry for Grants (LOI)
Definition
A Letter of Inquiry for a grant is typically a 2–3 page document used by nonprofits to introduce a project and request funding consideration from a foundation.
It is often the first step in the grant application process and determines whether an organization is invited to submit a full proposal.
The Structure of a Winning Letter of Inquiry
Most successful LOIs follow a clear, proven structure:
1. The Introduction (The Hook)
Clearly state why you are writing. Mention the specific amount of money you are requesting and the name of the project.
Pro Tip: If you have a connection to the foundation or a mutual partner, mention it here to establish credibility.
2. The Organization Description
Briefly summarize your organization’s mission, history, and credibility. You want to prove that you are stable, capable, and an expert in your field.
3. The Statement of Need
Explain the problem or gap your project is addressing.
Why does this project need to happen now?
Who will benefit?
Use one or two powerful statistics to ground your argument in reality.
4. The Project Description (The Solution)
Describe what you will actually do with the funds. Focus on outcomes rather than just activities.
Activity: "We will host 10 workshops."
Outcome: "100 participants will gain the skills necessary to secure stable employment."
5. The Budget and Sustainability
Give a ballpark total for the project cost and mention other funders you have approached. Funders like to see "leveraged" support—meaning they aren't the only ones taking a risk on you.
6. The Closing
Summarize the expected impact and thank them for their time. Explicitly state that you look forward to submitting a full proposal upon their invitation.
A Letter of Inquiry for a grant is typically a 2–3 page document used by nonprofits to introduce a project and request funding consideration from a foundation.
Once you understand the structure, the next step is writing it effectively.
5 Rules for Writing a Successful LOI
Be Concise
Every sentence must earn its place. If a word doesn't add value, cut it.
Follow Specs
If the funder says "3 pages max," do not send 3.5 pages. They will often discard it without reading.
Avoid Jargon
Write for a general audience. Don't assume the person reading it is an expert in your specific niche.
Focus on Alignment
Mirror the language used in the foundation’s mission statement or "Areas of Interest."
The "So What?" Factor
Always circle back to the impact. Why should the funder care about this specific problem?