How to Write a Letter of Inquiry (LOI)

What is a letter of inquiry (LOI) and how do I write one?

A letter of inquiry (LOI) – or letter of interest – is a form of outreach to a prospective donor to find out whether they would welcome a grant application. If you have heard about a foundation that supports projects like yours, and you want to apply for a grant, the first step is often to submit a letter of inquiry (LOI).

Why do foundations ask for LOIs?

Many grantmakers want to learn more about the organization or project prior to reviewing a full grant proposal. At best, LOIs can save both the grantseeker and the grantmaker time. It’s a way of saying, “Is this project or nonprofit a potential good fit for a grant from you?”

Do I need to send an LOI before applying for a grant?

Since every grantmaker has their own preferences, the LOI process can vary:

• A funder you meet at a conference might invite you to submit an LOI and give you some pointers about what to include. Or you might check out the website of a prospective foundation to see if they outline their grants process. 
• Some foundations tell you whether they require an LOI, and if so, what it should contain. 
• If you are making an unsolicited ask of a smaller or less publicly visible funder, you might reach out with a phone call first to ask about their LOI preferences, or simply send a brief LOI via email.

What are the different types of LOIs? What should an LOI include?

An LOI may take the form of a one- or two-page letter that usually contains the following:  

• A brief introduction to your organization and/or the project you are seeking funding for.
• The organizational and/or project budget. 
• The total amount of funding you are seeking for the organization or project. 
• A summary of funds you have already raised, and top funders. 
• The amount of funding you would like to request from this funder.

Include a dollar amount for the request. The amount should be based not only on your needs, but also on your research into what size grant this funder might realistically give to a project like yours. An LOI often ends with a clear ask along the lines of, “May we request a $25,000 grant to support expansion of our community education program? It would be a pleasure to work with the Silver Foundation on this important initiative.” 

Some funders, especially larger ones, have more formal and elaborate LOI processes.

• In this case, the LOI is not exactly a letter, but a shorter, preliminary version of the grant application. This type of LOI is often submitted via the foundation’s web portal, where you might be required to answer a series of specific questions and submit attachments such as audited financials and budget spreadsheets. 
• If a foundation wants this type of information at the LOI stage, they will let you know. For example, the Ralph M. Parsons Foundation, which supports nonprofits across Los Angeles County, clearly states on their website that an online LOI is a required first step in their grant application process and offers downloadable versions of both the LOI application and the full proposal application so that you can see what each entails.

How do funders respond to LOIs?

Every funder has their own timeline and process. Some may get back to you quickly, while others may review LOIs on a predetermined schedule – for example, in advance of quarterly Board meetings. Some funders are transparent about the timeline and process, and others may not be. 

Beyond replying with a simple “yes” or “no,” some interested funders will respond to an LOI with further information and guidance. They might share that while they wouldn’t fund one aspect of the project you’ve proposed, they would be interested in hearing about another. Or they might invite you to apply for a grant of a different amount than you requested. Some funders might make a grant decision based solely on the LOI. If they are interested in receiving a full grant proposal, they will invite you to take the next step in their grant application process. 

Like every interaction with a funder, the LOI process is an opportunity to build a relationship with a grantmaker. No matter how they respond to your first LOI, you never know where that relationship might lead.

You might also want to check out:

How do foundations make grantmaking decisions?

What is the difference between solicited and unsolicited requests?