Securing funding is an essential factor for nonprofits to successfully implement their projects and drive positive change in society. When seeking support from foundations, a well-crafted Letter of Intent (LOI) can significantly enhance your organization’s chances of securing a grant. In this blog article, we will explore the essential elements and guidelines of writing a persuasive LOI that captures the attention of foundations and increases the likelihood of obtaining the desired funding.
What is a LOI?
If you are seeking grant funding, you might have been instructed or advised to submit a LOI in advance of the full proposal. Your first question might be, “what does that even mean?”
LOI is an acronym for Letter of Intent (sometimes defined as Letter of Interest). Essentially, it is a letter telling the foundation that you want to apply for funding. The primary purpose is to capture the attention of the foundation and demonstrate the alignment between the project and the foundation’s funding priorities. It allows the foundation to evaluate whether the project fits within their areas of interest and determine if they are interested in learning more through a full grant proposal.
Typically, an LOI is a shorter document compared to a full grant proposal, ranging from one to three pages. It should be concise, persuasive, and clearly convey the key elements of the proposed project. The LOI should provide enough information to generate interest while leaving room for more detailed information to be presented in the subsequent grant proposal, if invited by the foundation.
Research before you write
A well-written LOI can lead to an invitation for a full grant proposal submission, showcasing the organization’s potential to create meaningful impact and increasing the likelihood of securing the grant. However, exactly what constitutes a well-written LOI depends on the foundation, and the specific requirements of the grant. Like any other letter, it should be written with the recipient in mind.
The first step is researching grant-making foundations and open RPFs (requests for proposals). To maximize the chances of success, seek out potential foundations that align with your nonprofit’s mission, values, and project focus areas. By understanding a foundation’s goals and objectives, you can tailor LOI to resonate with the foundation’s areas of interest. Consider factors such as the foundation’s funding history, eligibility criteria, geographic preferences, and grant size to ensure a strong match between the project and the foundation’s current funding priorities.
What should you include in a grant LOI?
Rule #1 is to follow the grant-maker’s guidelines! If they specify length, content, or any other requirements for the LOI, do it. However, most RPFs don’t include many (if any) specifics; often they simply instruct you to send a LOI, and then wait for an invitation to send a full proposal. In that case, you can safely stick with a standard format.
Typically, a LOI includes the following components:
- Opening Paragraph: Begin with a compelling introduction that grabs the reader’s attention. Clearly state the purpose of the LOI, including the project’s title and a concise summary of your nonprofit’s mission.
- Background and Rationale: Provide a concise overview of the issue or problem the project aims to address. Explain why the issue is significant, citing relevant data, research, or community needs assessments.
- Project Description: Outline the project’s goals, objectives, activities, and expected outcomes. Be specific, measurable, achievable, relevant, and time-bound (SMART) when articulating the project’s objectives.
- Methodology and Approach: Describe the methodology or approach the nonprofit plans to use to achieve the project’s objectives. Highlight any innovative or evidence-based strategies that will be employed.
- Organizational Capacity: Demonstrate your organization’s experience, expertise, and capacity to successfully implement the proposed project. Highlight relevant achievements, partnerships, and previous project successes.
- Sustainability: Address how the project will be sustained beyond the funding period, showcasing the nonprofit’s long-term vision and plans for financial sustainability.
- Budget: Provide a high-level budget estimate, outlining key expenses related to the project. Ensure the budget aligns with the foundation’s grant size and guidelines.
- Conclusion: Reiterate the importance and potential impact of the project. Express gratitude for the foundation’s consideration and include contact information for further communication.
Key tips for writing an effective LOI
By presenting a compelling LOI, you can generate interest and secure an invitation to submit a full grant proposal, which allows for more comprehensive detailing of the project’s implementation plan, budget, and evaluation methods. Here are some tips for accomplishing just that:
- Be concise and clear: Keep the LOI brief and to the point. Avoid jargon and use simple language to ensure clarity and easy comprehension.
- Keep it short: Remember that the LOI is an introduction, not a full proposal. Unless specified otherwise, it should be between one and three pages. Don’t include attachments unless requested.
- Tailor the LOI: Customize the LOI for each foundation, highlighting the specific alignment between the project and the foundation’s goals.
- Demonstrate impact: Clearly articulate the anticipated outcomes and the positive impact the project will have on the target beneficiaries or the community at large.
- Showcase organizational capacity: Highlight the nonprofit’s track record, expertise, and partnerships that reinforce its ability to successfully execute the proposed project.
- Proofread and edit: Thoroughly proofread the LOI to ensure it is free from errors, and edit for clarity, coherence, and conciseness.
Conclusion
A well-crafted Letter of Intent (LOI) is a powerful tool for nonprofit organizations seeking foundation grants. By understanding the purpose of an LOI, researching appropriate foundations, and employing effective writing strategies, you can significantly enhance your organization’s chances of securing the desired funding. It should not only convey the project’s potential impact but also showcase the organization’s capacity and commitment to creating lasting change. This is your chance to make a great first impression with a potential funder, so be sure to make the most of it!