Letter of Intent: Structure & Process

Jacquee Kurdas
Apr 23
3 min read

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:

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.

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.