How to Write a Letter of Inquiry for Grant Funding

What Is a Letter of Inquiry and Why Does It Matter?

A letter of inquiry, often abbreviated as LOI or sometimes called a letter of intent, is a brief written document that introduces your organization and proposed project to a funder before you submit a full grant proposal. Many private foundations and some corporate funders use the LOI as a screening mechanism to determine which organizations should be invited to submit complete applications. Think of the LOI as your first impression with a funder. It must be compelling enough to earn a second look without overwhelming the reader with unnecessary detail.

The LOI process benefits both funders and applicants. Funders avoid reading hundreds of full proposals that may not align with their priorities, and applicants avoid investing dozens of hours writing complete proposals for funders who would not have funded them regardless. For organizations new to grant writing, understanding the LOI process is a fundamental skill. Our article on defining the problem and need statement provides the foundational techniques for articulating need that every strong LOI requires.

When to Write a Letter of Inquiry

Not every funder uses LOIs. Federal grants and many state programs have formal application processes that go directly to full proposals. LOIs are most commonly required or accepted in these contexts:

• Private foundations that receive more inquiries than they can process through full proposals.
• Family foundations that use LOIs as a way to screen for alignment before investing time in reviewing detailed applications.
• Corporate giving programs that prefer a brief initial overview before entering a more involved proposal process.
• Funders that accept unsolicited inquiries but want to manage the volume by reviewing LOIs before issuing invitations to apply.

Always check the funder's guidelines before submitting an LOI. Some foundations explicitly state they do not accept unsolicited inquiries, and sending one anyway demonstrates a lack of research that will not serve your organization well.

Structure of an Effective Letter of Inquiry

While every funder may have specific requirements, most effective LOIs follow a similar structure and fit within one to three pages. Include these essential components:

Opening Paragraph: The Hook

Your opening must accomplish three things in a few sentences: identify your organization, state what you are requesting, and establish why this funder should care. Lead with the problem or opportunity you are addressing, not with your organizational history. A busy program officer scanning dozens of LOIs will decide within the first few sentences whether to keep reading.

The Problem or Need

In two to three paragraphs, describe the specific problem your project addresses. Use data to establish the scope and urgency of the need, but keep it concise. The LOI is not the place for exhaustive literature reviews. Focus on the most compelling evidence that demonstrates why this issue demands attention and why it matters to the communities the funder cares about.

Your Proposed Solution

Describe what you plan to do in clear, specific terms. Include enough detail for the funder to understand your approach without delving into implementation minutiae. State who will be served, what activities will be conducted, and what outcomes you expect to achieve. Funders reading LOIs want to see that you have a thoughtful, feasible plan, not just a good idea.

Organizational Qualifications

Briefly establish why your organization is the right one to do this work. Highlight relevant experience, key staff qualifications, past successes, and any partnerships that strengthen your capacity. Keep this section tight. The funder wants confidence in your ability to execute, not a comprehensive organizational history.

Budget Summary and Request

Include a brief budget summary or at minimum the total project cost and the amount you are requesting from this funder. This tells the funder whether your request is within their typical funding range and whether you have other committed or anticipated funding sources.

Closing

End with a clear statement of your request and an invitation for further conversation. Include contact information for the person who will respond if the funder has questions or wants to schedule a call.

Common LOI Mistakes to Avoid

Even experienced grant writers make avoidable errors in LOIs. Watch out for these frequent pitfalls:

• Writing too much. An LOI that reads like a full proposal defeats its purpose. Respect the funder's time and the format's constraints. If the funder specifies a two-page limit, do not submit four pages.
• Being vague about what you want to do. Broad statements about making a difference do not give funders enough information to evaluate your project. Be specific about activities, target populations, and expected results.
• Ignoring the funder's priorities. An LOI that does not explicitly connect your work to the funder's stated interests signals that you have not done your homework. Demonstrate clear alignment.
• Burying the request. State your funding request clearly and early. Do not make the funder hunt through paragraphs of background to figure out what you are asking for and how much you need.
• Sending a generic letter. Every LOI should be customized for the specific funder. Copy-and-paste letters are immediately recognizable and communicate a lack of genuine interest in the relationship.

For deeper strategies on structuring persuasive narratives and understanding what reviewers look for, our guide on grant narrative strategy and reviewer psychology offers techniques that strengthen both LOIs and full proposals.

After You Submit: Following Up

After submitting your LOI, note the funder's stated timeline for response. If no timeline is provided, a polite follow-up email two to three weeks after submission is appropriate. If your LOI is declined, consider it an opportunity to learn. Some funders will share feedback on why your inquiry did not advance. If invited to submit a full proposal, treat that invitation as a strong signal of interest and invest accordingly. The LOI opened the door, and the full proposal must walk through it with confidence. Our article on submission, peer review, and resubmission strategy covers how to maximize your chances once you reach the full proposal stage.

Ready to master every stage of the grant writing process from initial inquiry to funded proposal? The Complete Grant Architect course gives you the skills, templates, and strategies to approach funders with confidence and win more grants.

Learn more about grant writing strategies at Subthesis.