A letter of inquiry (LOI) is a short document, typically no more than three to four pages, that nonprofits and researchers send to a funder before submitting a full grant proposal. It serves as a first introduction: you briefly describe your organization, the problem you want to address, and what you’re asking for, so the funder can decide whether your project is a good fit before either side invests time in a lengthy application. Many private foundations require or strongly prefer an LOI as the first step in their grantmaking process.
Why Funders Use Letters of Inquiry
Foundations receive far more funding requests than they can support. An LOI lets program officers quickly screen projects for alignment with the foundation’s priorities, geographic focus, and budget capacity. Think of it as a mutual time-saver. If a foundation funds early childhood education in urban areas and your project involves rural elder care, a three-page LOI surfaces that mismatch before you spend weeks assembling a 20-page proposal with appendices, budgets, and evaluation plans.
For you as the applicant, the LOI stage also provides useful information. A decline at this stage tells you to redirect your energy toward better-matched funders. Some funders even share specific reasons for passing, which can sharpen your pitch for the next opportunity.
What to Include in an LOI
While every funder’s guidelines are slightly different, most LOIs cover six core elements in a concise format.
Introduction
Open with your organization’s name, the dollar amount you’re requesting, and a one-to-two-sentence description of the project. This paragraph functions as an executive summary. Include a brief note on the qualifications of key staff, your evaluation approach, and the project timeline. A program officer reading dozens of LOIs should be able to grasp who you are and what you want within the first few lines.
Organization Description
Keep this short. Provide a very brief history and overview of your current programs, but focus on demonstrating your capacity to carry out the proposed project. The goal is to draw a direct line between what your organization already does well and what you’re asking the funder to support. If you run a community health clinic and you’re seeking funding for a diabetes prevention initiative, show how your existing infrastructure and patient relationships make the new program a logical extension of your work.
Statement of Need
This is where you make the case that the problem is real, specific, and urgent. Describe who you’ll serve (the target population), where they are (the geographic area), and why the need matters. Use abbreviated statistical data and concrete examples rather than broad generalizations. Saying “we serve underserved communities” is vague. Saying “we serve 2,400 low-income families in neighborhoods where 68% lack access to primary healthcare” gives the reviewer a clear picture of the scale and severity of the problem.
Project Description and Methodology
Describe the major activities your project will involve, name the key staff members who will lead them, and state your desired outcomes. The methodology should flow logically from the need you just described: here’s the problem, and here’s how we plan to solve it. Frame outcomes as measurable change rather than activities. “Reduce hospital readmissions by 40% within 12 months” is far stronger than “provide services to the community.” Include baseline data or benchmarks when you can, so the funder can see how you’ll measure progress.
Other Funding Sources
In a sentence or brief paragraph, list the other funders you’re approaching for this project. This shows the reviewer that you have a broader fundraising strategy and aren’t relying on a single grant to carry the entire budget. It also signals credibility if well-known funders are already involved or being pursued.
Closing Summary
Restate the purpose of your project in a sentence or two, offer to answer any additional questions, and thank the funder for their time. Keep it brief and professional.
How an LOI Differs From a Full Proposal
The most obvious difference is length. An LOI runs three to four pages, while a full grant proposal can easily be 15 to 25 pages with attachments. But the difference goes deeper than page count. In an LOI, you’re making a concise argument for why the project matters and why your organization is the right one to do it. You’re not expected to include detailed budgets, full evaluation frameworks, data collection instruments, or letters of support.
Some funders treat the LOI as a “mini-proposal” and expect the bulk of the document (50% to 75%) to explain your data and methods, including their limitations. Others want a lighter touch. This is why reading each funder’s specific LOI guidelines is essential before you start writing. The Russell Sage Foundation, for example, asks for exactly four single-spaced pages and wants heavy emphasis on methodology, while other foundations may want just two pages with more focus on the problem and your organization’s track record.
Only include attachments if the funder explicitly asks for them. Sending unsolicited materials can signal that you didn’t read the guidelines carefully.
What Happens After You Submit
After you send your LOI, one of three things will happen. The funder may invite you to submit a full grant proposal, ask for additional information before deciding, or decline your request. Response times vary widely, from a few weeks to several months, depending on the foundation’s review cycle and how many submissions they’re processing.
If you’re invited to submit a full proposal, that’s a strong signal of interest, but not a guarantee of funding. You’ll typically receive instructions on what the full proposal should include and a deadline for submission.
A decline isn’t necessarily the end of the relationship. Some funders rotate priorities from year to year, and an organization that wasn’t a fit this cycle might align perfectly with next year’s focus. If the funder provides feedback on why they passed, use it. That kind of specific guidance is valuable for strengthening future LOIs to other funders as well.
Writing an LOI That Gets Read
Address the LOI to the correct contact person at the foundation, or to the CEO if no program officer is listed. Send it through the funder’s preferred method, whether that’s an online portal, email, or postal mail. These details are almost always spelled out on the foundation’s website or in its guidelines.
The most common reasons LOIs get rejected have less to do with the project itself and more to do with how it’s presented. Vague problem framing is a frequent issue: reviewers need specifics about who is affected, how many people, and what the consequences are. Describing outcomes as activities rather than measurable change is another red flag. “We will conduct 12 workshops” tells a funder what you’ll do, not what will be different because of it.
Budget details in an LOI are usually minimal, but whatever you include should connect spending to outcomes. A line item that says “$45,000 for program staff” is less persuasive than “$45,000 for two part-time community health workers who will conduct home visits to 300 families.” The funder wants to see that you’ve thought through not just what the project costs, but what each dollar is intended to accomplish.
Finally, show organizational capacity, not just programming. Funders aren’t just evaluating your idea; they’re evaluating whether your organization can actually execute it. Mention relevant experience, partnerships, and infrastructure that demonstrate you can deliver on the promises in your LOI.