Tips for Crafting a Letter of Intent
Funders may request a letter of interest, intent, or inquiry—referred to as LOIs—as either the first-stage screening process or as the funding application itself. LOIs are generally restricted to 2 or 3 pages and in some instances, the funder will provide guidelines for the required content. However, without guidelines, developing an LOI from scratch can be very overwhelming: it may seem like a blank canvas, but it’s not!
Think of an LOI as a very condensed form of the full funding applications you are familiar with. Presenting your information in a logical sequence will help you move from a blank page to a coherent LOI and answer key questions for the funder.
Who are you? (1 paragraph): Introduce your organization with your mission statement, general programs and services, a description of your clients, and where you provide services. Follow with your organization’s overall goal in delivering the programs and services.
How much and for what? In an LOI, your specific funding request should be presented early and conclude your introduction with one sentence: “We are requesting ($) for (how long) to support (name of your initiative)”.
What is the problem you are trying to solve? (2 paragraphs)? Explain why your initiative is needed and for whom. How do you know it’s needed? Support this with data and evidence (and cite the sources, of course) but choose very carefully. Which ones are going to best illustrate the need, given the short amount of space?
What is your proposed solution (your initiative) and its impact? (2 paragraphs:) Describe your initiative stating the objective, the very high-level activities, who will benefit, and the key partners who will be directly involved. Ensure it’s very clear why the activities are relevant to reaching your objective. Including an impact statement is important (As a result of this initiative, …) Keep the outcomes to 2 or 3 that best demonstrate the change that will occur and the benefit to the participants. Conclude this section with a few sentences describing your data collection and analysis plan to demonstrate accountability and reassure the funder of the value of their investment.
Why should your organization be the one to deliver the initiative? (1 paragraph): What experience, expertise, skills, and partnerships do you bring? Are your services unique to your community or to your participants? Provide specific examples of previous achievements and success to demonstrate your capacity.
How does your solution align with the funder’s priorities or objectives? (1 paragraph): Clarify how your initiative meets their funding priorities. Be as specific as possible. Illustrate the connection between your initiative and the funder’s goals.
Your LOI should also include a summary initiative budget with eligible expenses. Suggested categories include:
Staffing costs (for staff directly involved in delivering the initiative)
Professional fees (services of consultants /contractors/subject experts specifically relating to the delivery of the initiative
Workshops/Meetings etc.
Supplies/Materials/Equipment
Travel (where applicable)
Administration (limit to a 15% maximum of your initiative budget)
Close with a sign-off and include your contact information. Present it professionally and submit your LOI on your letterhead.
You’ll need your very best writing skills (see last month’s newsletter!) to cover all the key information—in 2 pages! Leave yourself plenty of time to write your LOI: they may be brief but they are deceptively difficult to write well.