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Imagine your nonprofit organization (NPO) embarking on a transformative project that could change lives and strengthen communities. Now imagine that dream slipping away because your Letter of Intent (LOI) didn’t capture the funders’ interest. What is a grant letter of intent? Let’s take a deep dive into grant LOIs, from preparation to proper format and everything in between. In this guide, FundSource26 will help you create an LOI that captures the interest of grantors, ensuring that your proposal has the best chance of success. Featuring a letter of intent sample and detailed instructions, this guide guarantees that your organization has all the tools to craft an exceptional nonprofit letter of intent.
Generally, a letter of intent refers to a nonbinding document that indicates an agreement between two parties. In the grantseeking world, a letter of intent is a document that introduces your nonprofit to a potential grantor. Also referred to as a letter of interest, the letter of intent is the key document that acts as your business or organization’s introductory gesture. It establishes contact with prospective funders, lets you declare your intentions, and establishes your authority. Key points your nonprofit should keep in mind when learning how to write an LOI for a grant:
A letter of intent lays down the foundation for engaging interactions with funders, setting into motion opportunities for funding. The function of an LOI is pivotal — it can demonstrate how wide-ranging and pertinent your project is. A grant letter of intent is more than a prerequisite in the grant application process. Writing a compelling intent letter is the gateway to securing support for your organization. A high-quality LOI allows you to express interest, showcase due diligence, and briefly summarize your organization’s value. On the other hand, a subpar LOI can lead to ignored prospects and unfruitful efforts. A well-crafted grant LOI effectively conveys the purpose of your project and initiates a bond with potential funders, laying a foundation for collaboration. The intent is to forge lasting relationships between your organization’s purpose and the philanthropic aims of grant providers.
The LOI may be concise, but it holds significant weight. Many grantors require submitting a letter of intent before a grant application. For example, in their grand guidelines, the Azrieli Foundation in Canada states the requirement to send a letter of intent as a first step when applying for a project or operating grant. While only delving into some of the details covered by a full proposal, a grant letter of intent still plays an important role. A high-quality letter of intent will:
Now that you understand what an LOI is and its importance in the grant-seeking process, it’s time to learn how to write a letter of intent for a grant. An effective grant letter of intent features several key elements that provide a detailed picture of your nonprofit and the specific project you seek to finance. The LOI typically outlines the primary activities and projects of the organization applying for the grant and should contain the following:
First and foremost, lay a strong foundation through meticulous preparation.
A well-structured LOI is akin to creating a custom key to unlock a particular door. Build awareness of the funder’s mission. Pay attention to detail in matching their interests with your project goals. When you fine-tune your LOI to address the individual needs and focuses of the grantor, you increase the chances that your correspondence will capture their attention and ignite their interest.
An effective executive summary should highlight an urgent need and provide a detailed map of your project’s activities and anticipated results. Gather relevant data about your organization’s mission, achievements, and current projects. Ensure you have up-to-date statistics and evidence to support your organization’s impact. Provide a short description of your proposed solution, outlining the project plan, required resources, and expected outcomes. By compiling this information, you create a strong foundation for your executive summary, making it easier for funders to assess the potential impact of your project.
If you want to win grants for your nonprofit, grant acquisition experts at FundSource26 recommend following the format of the letter of intent detailed below:
Your opening words should introduce your nonprofit’s fundamental purpose and principle beliefs in the letter of intent. This is an opportunity to encapsulate what drives your organization, highlight your notable accomplishments, and establish trustworthiness. Let’s compare the introductions of two LOI examples. LOI sample 1: We are a nonprofit organization that helps children. We get grants to provide programs and resources. We have been around for a while and have done some good work. We want to apply for a grant to help us continue our programs. LOI sample 2: Our nonprofit, Hope for All, is driven by a singular mission: to provide education and resources to underprivileged children, empowering them to build a brighter future. Founded in 2010, we have touched the lives of over 10,000 children, offering after-school programs, scholarships, and mentorship opportunities. Our dedication has earned us the trust of our community and partners. By fostering education, we aim to break the cycle of poverty and create sustainable change. Which would you pick if you were on the other side of the table?
The summary of the project should contain:
Consider incorporating these essential budget elements into your grant letter of intent:
Your presentation in the budget segment of your LOI needs to convey your project’s financial requirements and demonstrate your competence in fiscal management.
In finalizing your grant letter of intent:
The concluding segment should convey a hopeful tone that paints a favorable image of your nonprofit organization in the funder’s mind while clarifying what actions are anticipated moving forward. Knowing how to end a letter of intent is an important element that should not be overlooked.
Wish you had a template to follow? We at FundSource26 are hapy to share a letter of intent grant sample:
Dear [Grantor’s Name],
My name is [Your Name], and I am the Executive Director of [Your Organization], a nonprofit organization dedicated to providing educational opportunities for underserved youth. Since our founding in [Year], we have been committed to empowering young people through mentorship, tutoring, and enrichment programs. Our primary focus is on [Specific Programs], which became instrumental in improving academic performance and boosting self-confidence among our participants. We serve [Target Population], including [Specific Demographics], and our programs address critical needs such as [Specific Issues].
Over the past [Number of Years], we achieved remarkable success. For instance, [Statistic or Example of Impact], and we have been recognized by [Award or Recognition]. According to [Source], our programs have resulted in [Specific Results].
We are seeking [Amount] to support our [Specific Project], which will enable us to [Purpose or Goal]. These funds will be used for [Detailed Explanation of Budget Items].
Thank you for considering our request. We believe that [Your Organization] aligns with your funding priorities and would be grateful for the opportunity to submit a full proposal for review.
We look forward to collaborating with [Grantor’s Organization].
Sincerely, [Your Name]
[Your Contact Information]
The technical elements of your grant letter of intent are just as critical to its success as the substance within. Let’s examine the following components:
These factors significantly enhance the document’s professional appearance and influence how funders view your nonprofit organization.
Using your organization’s official letterhead adds a touch of professionalism to your grant LOI. A letterhead immediately signals to the funder that your organization is legitimate and established.
Including your organization’s logo reinforces brand identity and makes your LOI visually distinctive. A logo helps funders easily recognize your organization.
Proper formatting and presentation ensure your LOI is easy to read and visually appealing. Use clear headings, bullet points, and a readable font to enhance the document’s overall appearance.
FundSource26 stands out as the quintessential collaborator your organization requires to attain grant support and develop enduring funding tactics that guarantee sustainability and expansion.
FundSource26’s grant acquisition services are tailored to the unique needs of nonprofits, providing peace of mind and confidence in their ability to deliver results. FundSource26 works with multiple NPOs and organizations, including food banks and faith-based institutions. Check out our winning stories here.
To conclude, a winning grant letter of intent is your nonprofit’s ambassador, speaking volumes about your mission, vision, and potential impact before a full proposal ever comes into play. Pay attention to technical details and consider partnering with experts like FundSource26 to make your grantseeking efforts successful. With the guidance provided in this post, you’re now equipped to write an LOI that lays a solid foundation for achieving your funding goals. Book a call with FundSource26 today to discuss your nonprofit’s fundraising journey.
A grant letter of intent serves to acquaint potential funders with your company or organization, outline the proposed project, and signify your planned request for funding, thereby setting the stage for a detailed proposal submission.
A grant letter of intent should be succinct, optimally one page in length. It may stretch up to three pages if required without compromising the clarity of the message. Focus on the most important information and keep it brief.
An effective grant letter of intent includes several essential elements: an introductory section that captures attention, a concise description of the goals and objectives of your project, specific information about your funding needs, and a formal closing that thanks the reader and mentions future actions.
Emphasize clear communication, tailor your message so it resonates with the mission of the funder, and do a final review of your grammar and spelling.
Foundations that request a letter of intent usually provide a deadline. Make sure to submit your LOI a few days before the deadline. For other nonprofit grant opportunities, you should send an LOI as soon as you finish writing one.
The assistance of fundraising specialists like FundSource26 will boost your grant win rate. Our services include writing compelling letters of intent, strategic advice, and developing comprehensive fundraising strategies.
Batya Willmott is an accomplished fundraising expert and celebrated grant writing strategist with over 19 years of experience, having secured over $40 million for diverse organizations. As the Founder and CEO of FundSource26, she leads a team of top-notch development professionals dedicated to helping nonprofits maximize their funding potential and raise more 5,6 & 7 figure gifts. Driven by a commitment to fostering goodness and kindness, Batya passionately advocates for impactful philanthropy, shaping the landscape of nonprofit fundraising and inspiring positive change. For valuable insights into fundraising, grants, nonprofits, and entrepreneurship, follow her on LinkedIn.
