What an LOI is — and when funders require one
A letter of inquiry is a brief, structured introduction sent before a full proposal. Funders use it as a filter: rather than reading dozens of long applications, they read short LOIs, screen for fit, and invite full proposals only from the organizations whose work matches their priorities. For you, that's good news — a one-page LOI takes a fraction of the time a full proposal does, so a "no" early costs almost nothing.
Many foundations require an LOI as the first step and will not accept an unsolicited full proposal. Others accept LOIs year-round as a way to start a relationship. Either way, the rule is the same as for any funder: follow their process exactly. If they ask for an LOI, do not send a proposal. The way you follow instructions previews how you'll manage their money.
LOI vs. full proposal
| Letter of inquiry | Full proposal |
|---|---|
| 1–2 pages | Typically 5–15 pages plus attachments |
| Screens for fit and interest | Documents the full plan, budget, and evidence |
| Summary of need, project, and ask | Detailed need statement, methods, evaluation, line-item budget |
| Goal: earn an invitation to apply | Goal: win the award |
Think of the LOI as the trailer and the proposal as the film. The trailer's only job is to make the funder want the full story.
The 1–2 page structure, section by section
A strong LOI follows a fixed order. Each part is short — usually one paragraph — and each one sets up the next.
- Hook (1–2 sentences)Open with the problem and the change you'll create, not "We are writing to request funding." Make the funder want to keep reading.
- Organizational credibility (2–3 sentences)Who you are, your 501(c)(3) status, your mission, and a fast proof point that you can deliver — years of operation, people served, or a relevant result.
- The need (1 paragraph)Define the problem with local, verifiable data and a brief human picture of who is affected. Make it the community's need, not "we need money."
- Project & the ask (1 paragraph)What you'll do, for whom, over what time period — and the specific dollar amount you're requesting and how it fits the total project cost.
- Outcomes (1 paragraph)The measurable results the grant will produce, and how you'll know it worked. One or two concrete, time-bound numbers beat a list of adjectives.
- Close (2–3 sentences)Thank the funder, note that you'd welcome the chance to submit a full proposal, and give a named contact with email and phone.
Sample LOI skeleton
Copy this and fill the brackets. Keep it to one page if you can.
[Date]
[Program Officer Name], [Title]
[Foundation Name]
Dear [Name],
[Hook] In [your county], [sharp local statistic about the problem]. [Organization] is writing to ask the [Foundation] to consider a $[amount] grant toward [project], a program designed to change that.
[Credibility] [Organization] is a [years]-year-old 501(c)(3) that [mission, in one line]. Last year we [concrete result — people served / outcome measured], and we are governed by an independent board with [relevant strength].
[Need] [One paragraph: the problem in local, verifiable terms, plus a one-line human picture of who is affected and the cost of inaction.]
[Project & ask] Over [time period], [project] will [activities, for whom]. We are requesting $[amount] toward a total project cost of $[total]; the balance is supported by [other sources, including recurring/unrestricted income].
[Outcomes] By [date], we expect [1–2 measurable, time-bound outcomes], which we will track via [method] and report to you.
[Close] Thank you for your consideration. We would welcome the opportunity to submit a full proposal. Please contact [name] at [email / phone].
Sincerely,
[Name, Title]
Notice the single line in the ask paragraph naming other sources, including recurring or unrestricted income. That one clause quietly tells the funder you're diversified and durable — that this grant is a safe investment, not a lifeline.
Have recurring, unrestricted income to name before you write.
The strongest LOIs mention income the organization controls. Good Circles gives your nonprofit recurring, unrestricted revenue with almost no staff time: supporters pick your cause once, then a share of their everyday local spending funds you automatically — about $72 per active supporter per year (≈ $36,000/year from 500 supporters), free to join. That's exactly the durable, diversified income that makes a funder lean in.
Claim a Founding Nonprofit spot →Tips that turn an LOI into an invitation
- Match the funder's stated priority in your hook — echo their language so fit is obvious in the first line.
- Name a real number. A specific ask and a specific outcome read as a plan; vague ranges read as a wish.
- Lead with the community's need, not your organization. Funders fund a solution to a problem.
- Stay on one page when you can. Brevity signals respect for the reviewer's time.
- Address a real person — find the program officer's name rather than "To whom it may concern."
- Proofread ruthlessly. A typo in a one-page letter is hard to miss and easy to judge.
Before you send — the LOI check
- The hook names the problem and the change, not "we request funding"
- Your credibility, the need, the ask, and the outcomes each appear once and clearly
- You named a specific dollar amount and at least one measurable outcome
- You followed the funder's length and format exactly
- It's addressed to a named contact and signed by the right person
Sources & tools
Free first
- Candid — Common grant proposal documents (LOI included, free samples) — Explains what a letter of inquiry / letter of intent must contain and provides a free sample LOI to model.
- Candid Learning — Proposal writing knowledge base — Authoritative articles on the 1-3 page LOI: how to state the need, your solution, and your org's fit concisely enough to earn a full invitation.
- Candid — Online Librarian (free help) — Free live chat and email support from Candid librarians to sanity-check an LOI or find a funder's exact LOI requirements.
- IRS — Tax Exempt Organization Search (research the funder first) — Pull a funder's 990 before writing so your LOI references their real priorities and typical grant size, raising your invite-to-apply odds.
Paid — optional labor-savers
- Candid search subscription (AI LOI Writer) — Paid tiers include an AI-assisted LOI writer that guides you section by section and proofreads as you draft. Worth it when You write LOIs frequently and want structured drafting plus funder data in one tool.
- Instrumentl — Flags funders that require an LOI first and tracks those deadlines alongside funder priorities. Worth it when You're managing many funders and need to know which require an LOI before a full proposal, and by when.
Last verified 2026-06-16. Figures and rules change — verify at the source before you act.
FAQ
What is a letter of inquiry for a grant?
A letter of inquiry (LOI) is a brief, 1–2 page summary of your organization, the need, your project, and your funding request, sent to a funder before a full proposal. It lets the funder decide whether your work fits their priorities and whether to invite a full application, saving both sides time.
How long should a letter of inquiry be?
One to two pages, or whatever length the funder specifies. Treat it as a tight executive summary: every sentence should earn its place. If a funder gives a word or page limit, follow it exactly.
What is the difference between an LOI and a full proposal?
An LOI is a short pitch that screens for fit; a full proposal is the detailed plan, budget, and evidence. Many funders use the LOI as a first gate and only invite full proposals from organizations whose work matches their priorities.
Should I mention diversified funding in an LOI?
Briefly, yes. A single line noting recurring, unrestricted income alongside the request signals that your organization is durable and the grant is a safe bet, which can tip a borderline LOI toward an invitation.