How to Write a Strong Letter of Inquiry (LOI)

What Is a Letter of Inquiry?

A letter of inquiry (LOI) is a brief, persuasive document sent to a foundation before submitting a full grant proposal. Think of it as a first impression — a concise pitch that tells a funder who you are, what problem you are addressing, and why they should invite you to apply. Most private foundations require an LOI before accepting a full application, and some use it as the sole basis for funding decisions.

An effective LOI is typically one to three pages. It should be polished, specific, and tailored to each funder's priorities. A generic letter rarely succeeds. The goal is not to tell your entire story but to spark enough interest that the foundation asks to learn more.

When Should You Send an LOI?

Send an LOI when a foundation's guidelines specifically request one, or when no formal application process exists. Many family foundations and smaller community foundations prefer LOIs over lengthy proposals because they allow program officers to screen requests quickly.

Before writing, confirm that the foundation accepts unsolicited inquiries. Check their website, annual report, or 990 filings for guidance. If the foundation explicitly states that it does not accept unsolicited requests, respect that boundary and look elsewhere.

Key Sections of an LOI

Organizational Introduction

Open with one to two sentences that establish your organization's credibility. State your mission, the population you serve, and your geographic focus. Mention your track record briefly — for example, years of operation or the number of people served last year.

Problem Statement

Describe the specific problem your project addresses. Use data to support the urgency. Avoid broad generalizations; instead, focus on the particular gap your organization is positioned to fill. Connect the problem directly to the funder's stated interests.

Proposed Solution

Explain what you plan to do and how it will address the problem. Outline your approach, key activities, and expected outcomes. Be concrete — mention specific deliverables, timelines, and the number of people who will benefit. If your approach is evidence-based, say so and cite the evidence briefly.

Budget Overview

Include a high-level budget summary. You do not need a line-by-line breakdown at this stage. State the total project cost, the amount you are requesting from this funder, and any other confirmed or anticipated funding sources. Showing that you have diverse revenue streams signals organizational health.

Closing and Next Steps

End by restating why your project is a strong fit for this funder. Express willingness to provide additional information, answer questions, or submit a full proposal. Include your contact information and thank the reader for their time.

Tips for a Winning LOI

Tailor every letter. Research the funder's giving history, stated priorities, and recent grants. Reference specific programs or focus areas in your LOI to show you have done your homework.

Lead with impact, not need. Funders want to invest in solutions, not just problems. Frame your organization as an effective agent of change rather than a passive recipient of charity.

Be concise and clear. Program officers review dozens or hundreds of LOIs. Respect their time by writing tight, jargon-free prose. Every sentence should earn its place on the page.

Proofread meticulously. Typos and grammatical errors undermine your credibility. Have a colleague review the letter before you send it.

Follow instructions exactly. If the funder specifies a page limit, format, or required attachments, follow those instructions to the letter. Deviating from guidelines suggests you will be difficult to work with.

Common Mistakes to Avoid

• Sending a generic letter that could apply to any funder
• Burying the ask — state the amount you are requesting early
• Overloading the letter with jargon or technical language
• Neglecting to connect your project to the funder's priorities
• Forgetting to include a budget summary

A strong LOI opens the door to a conversation with a funder. Take the time to craft each one carefully, and you will significantly increase your chances of being invited to submit a full proposal.