Letter of Intent: Structure & Process

Discover how to structure and submit your letter of intent (LOI) to grant funders. 

Some funders require a Letter of Intent (LOI) as part of their grant application process, but not all LOIs are created equal. For some funders, the LOI is a form developed by the funder, with specific questions or prompts to follow. However, for others, there is less structure, and crafting an LOI from scratch can be a bit more nuanced.

An LOI is a fundamental document that formally communicates your nonprofit organization’s interest in a grant opportunity to a funder. It helps the funder evaluate your organization for potential alignment with their funding priorities.

In this blog post, we'll guide you through how to structure and submit a letter of intent, making sure you're grant-ready when it’s time to communicate with funders. Understanding how to craft an effective LOI can increase your chances of securing the funding your organization needs.

LOI Structure

Make a good first impression with a clean presentation on organizational letterhead. 

We recommend that you format your letter of intent as a one-page document. This ensures a simple and brief introduction of your organization to a funder. Consider your letter of intent an abbreviated version of a grant application. 

Break your letter of intent into four paragraphs that introduce your organization, outline your needs statement, present your impact and the outcomes you aim to achieve, and thank the funder for the opportunity to share your work.  

Introduction

Before diving into your request, introduce yourself and make your request: “We respectfully request the opportunity to submit a full proposal to _____ Foundation”.

Paragraph 1

Provide an overview of your organization. Share your mission and vision. 

Paragraph 2

Define your needs statement. A needs statement outlines the problem your organization aims to address and how it plans to address it. Your needs statement should clearly articulate the issue and use data to explain why it matters, who it affects, and its importance. 

Paragraph 3

Outline the desired outcomes your organization aims to achieve. Present your strategic approach and outline the program activities you’ll implement to solve the problem.

Paragraph 4

Close out your letter of intent by thanking the funder for the opportunity. Share your interest in engaging the funder and provide your contact information. Sign off sincerely! 

This concentrated approach will focus your letter of intent to include the most important information that a funder needs to know to begin assessing your organization for funding. 

LOI Process

Funders have a variety of approaches for considering and evaluating nonprofit organizations for funding that may change based on the size or structure of the funder. 

The LOI process requires intentional prospect research to identify funders, understand their interests, anticipate deadlines, and meet proposal requirements. The LOI process is a two-step process that funders use to gauge interest from nonprofits and consider if an organization is in alignment with their priorities before accepting a complete application. First, organizations submit a letter of intent; second, selected organizations are asked to submit a formal grant proposal. 

Research prospective funders and note if they have an established LOI process. We recommend sending letters of intent to foundations that do not list a formal application process on their Form 990. 

By submitting a letter of intent, you are articulating your interest in the opportunity to submit a formal funding request. 

There are several benefits to the LOI process: 

1. Relationship-building

This process allows your organization to build relationships with potential funders. Submitting a letter of intent is an excellent opportunity for your organization to introduce itself to a potential funder and provides a natural opportunity for an impact-driven discussion.

2. Time Saving  

Submitting a letter of intent requires less time and effort, which can support organizations with limited capacity. If selected to submit a formal grant request, you know that your organization is strongly aligned with the funder, allowing you to prioritize the best opportunities for your organization and not waste time on funders that aren’t a good fit.  

In conclusion, a letter of intent is a one-page document that introduces your organization to a funder and expresses your interest in submitting a formal grant request. This crucial document helps articulate your organization's mission, vision, and service to the community clearly and concisely, while allowing funders to determine whether your organization is a good fit for grant funding. 

Our team can help you prepare your letter of intent! 

Contact us to learn more about how we can help your organization become grant-ready.  

The Grant Writing Process

The writing process includes a series of simple, actionable steps. Applying the writing process to your grant writing will help your organization implement an easy and replicable proposal process. In this blog post, we’ll explore the grant writing process and offer insights on how to successfully implement it.

The Grant Writing Process

The grant writing process includes five steps: 

1. Research

2. Prewriting

3. Drafting

4. Revising

5. Editing 

Research

Thorough research is the first step in the grant writing process. Proper preparation will help you develop a strong grant proposal. 

Begin by carefully reviewing the funder's grant guidelines and application requirements to ensure you follow the funder's instructions precisely. This is a common grant mistake that is easily avoided. Inadequate research into the funder's guidelines and application requirements can lead to unsuitable proposals and missed opportunities. 

During your research, ask questions and request clarification from funders about aspects of the application guidelines or requirements. This provides an opportunity to connect with the funder while securing all the information needed to develop the strongest proposal possible. 

More broadly, it is crucial to understand the funder’s preferences to develop a proposal that aligns with their interests and priorities. 

Once you understand the funder’s guidelines, requirements, and preferences, you’ll be ready to begin the prewriting phase. 

Prewriting 

Prewriting is the second phase of the writing process. In this step, you decide on your funding request and structure your proposal. 

Begin this stage with a brainstorming session to determine your funding request. Consider your organization’s needs and programming in relation to the funder’s priorities. Reflect on your research to confirm that your request resonates with the funder’s interests. 

Once you have determined your funding request, develop an outline to organize your proposal. 

Creating an Outline

An outline provides the scaffolding for your grant proposal and ensures your funding request is thorough. 

We recommend that you begin your outline with the funder’s proposal prompts. Copy and paste each proposal prompt into a Word document. Then, consider how you might tell a story based on the order in which the funder requests information. 

Your outline should include a clear introduction, comprehensive needs statement, objectives, methods, evaluation plan, and budget.  

Once you have an outline, you can begin writing your first draft. 

Drafting 

Drafting is the third phase of the writing process, where you develop a powerful thesis and let your ideas flow freely onto the page. 

Before you begin writing, give yourself space to do so. Schedule time and find a quiet setting for writing to limit interruptions. This will allow you to put all of your focus into your writing. 

Begin to draft your proposal based on your outline. Write using plain language to ensure it is easy to read and understand. Break down your proposal into easily digestible sections using subheadings and bullet points to simplify complex topics. 

Utilize your boilerplate document to answer common grant prompts efficiently. Although you may be repurposing commonly used language about your organization, be sure your application remains authentic and speaks directly to the funder. The more you can connect your proposal with the funder's priorities, the more compelling your proposal will be.

Focus on progress over perfection and prioritize writing down all of your thoughts. Your first draft is a rough draft. It is a work in progress that you’ll continue to craft throughout the final steps of revising and editing. 

After completing a draft of your proposal, we recommend taking a step back before beginning revision. It’s important to allow yourself time away from your writing to revise with a fresh perspective. 

Revising

Revising is the fourth step of the writing process, allowing you to refine your proposal to improve its flow, clarity, and alignment with the funder.

Read your proposal and critically evaluate its structure and clarity. We recommend reading your proposal aloud. This will help you quickly identify confusing sentence structure and repetitive phrasing. As you read, mark up your writing with comments and suggestions. 

Rearrange, replace, and remove sections or unnecessary words. Cut the fluff and prioritize conciseness. 

Confirm that the information in your proposal is accurate. Errors and inconsistencies can harm your credibility and negatively impact your chances of receiving funding. 

Once your revision is complete, request approval from program staff to confirm the proposal reflects their work and aligns with their program objectives. Staff review can ensure the accuracy of your proposal. 

In addition, review that your proposal meets all application requirements for formatting, character, and word counts. 

Editing 

Editing is the fifth step of the grant writing process and is crucial to the success of your funding request. 

Begin by proofreading your proposal for spelling and grammar. This is a simple way to improve the professionalism of your request. 

Next, review your proposal for clarity and cohesiveness. 

Verify that your proposal adheres to all guidelines and requirements. 

Review your research and consider the funder's priorities. Does your proposal align with their unique goals and objectives? 

Request constructive feedback. It’s essential to improve your grant writing for the proposals you write today and those you will write in the future. Reach out for feedback from trusted colleagues to better understand how others interpret your proposal. Provide them guidance on what to look for in the proposal, including evaluating the clarity and conciseness of your writing. If available, provide the funder’s evaluation guidelines to your reviewers so they can provide feedback based on the criteria against which your proposal will be reviewed. 

Complete final edits to your proposal and proofread your final proposal. A well-edited proposal will allow you to submit your proposal confidently. 

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In conclusion, the grant writing process includes five steps: research, prewriting, drafting, revising, and editing. Breaking these steps down can help your organization navigate the process easily and efficiently. 

We understand the grant writing process can be challenging to navigate. Our team members at Bloom Grant Consulting are experienced grant writers. We offer a range of investment options, including leading all grant efforts as your contracted teammate, building grant programs from scratch, developing content, creating grant calendars, researching funders, and more. Contact us to learn more about how we can help your nonprofit Bloom. 

Pitching a Grant Consultant to Nonprofit Leadership

Strategies for effectively presenting the case to hire a grant consultant to executive leadership.

You’ve defined your nonprofit's needs and identified a grant consultant as the key to unlocking financial sustainability and mission impact. Now, you need the support and approval from your executive leadership. In this blog post, we’ll share strategies for effectively presenting the case to hire a grant consultant to your nonprofit’s leadership. 

Position Hiring a Grant Consultant as a Strategic Investment 

A grant consultant can help your organization manage its grant program and approach funders confidently and consistently. This is a strategic investment in your organization’s future, providing financial sustainability through grant research, writing, and management.  

Take a holistic view of your organization, from mission and vision to strategic plan. Align your pitch with your organization’s strategic plan and showcase how a grant consultant can help your organization reach its goals. 

Highlight Your Nonprofit’s Grantseeking Challenges 

Ensure your executive leadership understands the internal challenges your organization faces. You are the expert in your organization's day-to-day challenges. Communicate these clearly and explain how they affect your organization’s ability to achieve mission impact and financial sustainability. Highlight the specific solutions a grant consultant can provide to address your organization's challenges.

Common challenges we see include time and capacity. These challenges can lead organizations to spend less time building relationships with funders, researching funding opportunities, and submitting funding requests. Deadlines may be missed, and crucial funding may be lost. These challenges can leave staff feeling overwhelmed and unsupported, which may cause staff turnover. 

Connect Your Challenges to Grant Consultant Solutions

When pitching a grant consultant, connect your specific challenges to the support a grant consultant provides. Remember, a grant consultant can do more than write grants for your organization. They can ensure staff have the tools and support to reach their full potential and strengthen their organization. 

Our comprehensive services ensure your organization has the tools, resources, and coaching to secure funding. Our services can save your organization time with efficient project management. We can increase your organization’s capacity by allowing staff to focus on executing mission-driven programming and services. We can help you identify new funding opportunities with access to cost-prohibitive prospect research tools. We can guide you on how to build relationships with funders. A grant consultant can address all of these challenges and more. 

Present the Cost of Hiring a Grant Consultant

Executive leadership is responsible for the organization's financial health. The cost of hiring a grant consultant will be a key concern of leadership. Root the cost of hiring a grant consultant in reality by obtaining proposals and vetting consultants.  

Depending on your position in the organization or relationship with executive leadership, you may require approval to begin conversations with grant consultants. These initial meetings are essential to build support from executive leadership throughout the discovery process by highlighting the true cost. Ask questions and gain perspective on what executive leadership would like to see from a grant consultant proposal and questions or concerns they may have. By understanding the priorities of executive leadership, you’ll be prepared to ask the right questions and identify the right consultant for your organization.

Learn the process of engaging a grant writer and find tips to prepare for each stage in our blog, Navigating the Process of Engaging a Grant Writer. 

Leadership will also benefit from understanding the consultant’s history of success. Request case studies, testimonials, and references to demonstrate the consultant’s effectiveness and the potential return on investment for your organization.  

For every $1 our clients spend, we raise $12 for their mission. 

A grant consultant can also be highly cost-effective for your organization, especially compared to the cost of hiring a grant writer as a full-time employee. This includes reduced overhead and benefit costs that can be a significant long-term investment. In addition, a consultant's flexibility allows your organization to respond quickly to funding needs and scale your contract up or down accordingly. 

Beyond the cost, establishing key performance indicators for the engagement will ensure leadership that you’ve considered success measures to ensure a fruitful partnership with clear goals.

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You recognize the impact a grant consultant can have on your organization’s financial future, advancing your grant program from research to submission. By following these steps, you can craft a compelling pitch that will resonate with your nonprofit leadership and clearly demonstrate the value of hiring a grant consultant. 

Showcase your understanding of the organization’s long-term goals and position a grant consultant as a strategic investment to help achieve them. Highlight the challenges your nonprofit currently faces and explain how a consultant can offer personalized solutions. Finally, present the cost and outline how you’ll measure the partnership's success to ensure the investment delivers tangible results.

With the approval of your nonprofit leadership, we’ll be excited to partner with you and help your organization Bloom. Contact us to learn how we can support your organization.