How to craft a winning letter of inquiry (LOI)

How to craft a winning letter of inquiry (LOI)

Picture this: a funding organization receives 100 Letters of Inquiry (LOIs) but only requests a full grant proposal from 10. What makes those 10 LOIs stand out? Successful LOIs grab attention with precision, clarity, and relevant storytelling. In this guide, we’ll explore how to write a compelling LOI that aligns with funder priorities and makes a memorable impression on multiple funders.

What is a letter of inquiry (LOI)?

A Letter of Inquiry (LOI) is a concise document submitted to prospective funders, introducing your organization and project. Funders use LOIs to decide which projects align with their goals and unique priorities before committing to reviewing a full proposal. Typically, an LOI ranges from one to two pages and serves as a bridge to more detailed communication.

When to use an LOI

• When a funder explicitly requests it
• To gauge funder interest before investing time in a full proposal
• When aligning preliminary ideas with the funder’s mission alignment

Word count/page expectations

Ensure your LOI is focused, generally one to two pages, aligning with specific funder guidelines and letter format.

Core elements of an effective LOI

Introduction

Craft an engaging opening that captures attention. Clearly state your organization's name and the funding amount requested, ensuring mission alignment with funder goals.

Example Phrase: “I am writing on behalf of [Your Organization Name] to request [$X] in support of [Project Name], which aligns with your priority to [briefly describe project goal].”

Organization overview

Provide a snapshot of your organization, highlighting your mission, history, and key achievements that establish credibility. Emphasize your readiness to execute the proposed project.

Example Phrase: “Established in [Year], [Your Organization Name] is dedicated to [Mission]. We have successfully [Achievement] and are poised to address the funder's priorities by [Project Objective].”

Statement of need

Detail the specific issue your project addresses, using compelling data and quantifiable evidence to illustrate its urgency and relevance to the funder’s mission.

Example Phrase: “Our initiative targets the increasing need for [describe need], which affects [target population].”

Project description

Outline the proposed solution, including goals, objectives, and key activities. Highlight how your project directly aligns with the funder’s goals and unique priorities.

Budget overview

Provide a summarized budget, specifying the total cost and the requested amount. Mention additional funding sources or partnerships with different funders to illustrate collaboration.

Closing request + contact

Reiterate your funding request, express appreciation, and invite further discussion with the correct person. Provide personal information, ensuring it's informative and enhances credibility.

Example Phrase: “Thank you for considering our request. I look forward to discussing our proposal. Please reach out at [Contact Information].”

Real example: before & after mini-LOI paragraphs

Before

“We need money to help students.”

After

“We request $50,000 to expand our tutoring program, proven to increase student achievement by 20% in under-resourced areas. This funding will enable us to reach 500 more students, aligning with your mission to enhance educational outcomes in underserved communities.”

Explanation: The revised version clearly states the amount requested, the specific impact, and aligns with the funder's mission and priorities.

Common mistakes to avoid

Checklist

• Generic letters: Personalize each LOI to the funder's interests.
• Over-explaining: Keep it concise—save details for the full grant proposal.
• Research gaps: Understand the funder’s mission, goals, and priorities.
• Typos and formatting issues: A polished LOI reflects professionalism and credibility.

How to tailor your LOI for different funders

Mirroring language

Use terminology and priorities from the funder’s mission statements to show alignment and enhance funder-aligned LOIs.

Tone differences

Adjust formality based on whether the funder is corporate or community-focused. For instance, corporate funders may prefer more formal language, whereas community funders might appreciate a more personable tone.

AI suggestions

Utilize AI to analyze tone and clarity with prompts like: “Check the tone of this LOI to ensure alignment with a corporate funder's style."

How to use AI to draft your LOI (without losing your voice)

When AI helps

• Structuring the LOI: Use AI to suggest the layout.
• Adjusting tone: AI can provide tone suggestions but should be reviewed for authenticity.
• Summarizing projects: Quick overviews and condensing details, keeping mission alignment in mind.

When not to rely on AI

AI may overlook nuances and produce generic content. Always include a human editor for authenticity and detail to meet specific funder requirements.

Beginner-Level Prompts

1. “Condense this project overview into a concise paragraph with a friendly and professional tone focused on environmental sustainability.”
2. “Transform this grant proposal into a short LOI capturing the essence of our educational program for underprivileged children.”

Intermediate-Level Prompts

1. “Rewrite this detailed project plan into a concise LOI that highlights key partnerships and funding needs for a healthcare initiative.”
2. “Create a one-page LOI from this report, ensuring a blend of technical details and a community-focused approach for a cultural arts program.”

Advanced-Level Prompts

1. “Draft a comprehensive LOI from this strategic plan, incorporating a strong call to action and targeting private foundations interested in renewable energy projects.”
2. “Summarize this research paper into an engaging LOI, emphasizing innovative methodologies and aligning with the priorities of tech-focused funders.”
3. “Transform this multi-section document into a streamlined LOI, maintaining a balance between quantitative data and narrative storytelling for a social justice initiative.”

These variations cater to different levels of expertise and complexity, allowing users to experiment with AI capabilities to fit their specific needs.Final tips and encouragement

Even imperfect LOIs can initiate valuable conversations. Focus on clarity, mission alignment, and authenticity.

By thoughtfully crafting your LOI and leveraging AI for efficiency, you open the door to greater grant funding opportunities while maintaining your organization’s unique voice and mission alignment.