Letters of inquiry introduce your organization and project to foundations before submitting full proposals. According to Foundation Center data, foundations invite approximately 30% of LOI writers to submit full proposals—but this rate jumps to 60% for well-crafted letters addressing clear funder priorities. Strong LOIs save time for both nonprofits and funders while opening doors to funding.
What 6 Sections Must Every 2-Page LOI Include?
LOI Structure Template
| Section | Length | Key Content |
|---|---|---|
| 1. Opening | 1 paragraph | Who you are, amount requested, project summary |
| 2. Problem Statement | 4-6 sentences | Need with compelling statistics, urgency |
| 3. Proposed Solution | 8-10 sentences | Activities, target population, evidence of effectiveness |
| 4. Qualifications | 4-6 sentences | Track record, expertise, partnerships |
| 5. Budget Summary | 2-3 sentences | Total cost, request amount, other funders |
| 6. Closing | 2-3 sentences | Thank you, next steps, contact info |
LOI Opening Paragraph Template
[Organization Name], a [brief descriptor - e.g., "25-year-old nonprofit serving low-income families"], respectfully requests $[amount] from [Foundation Name] to [one-sentence project summary]. This project aligns with your foundation's commitment to [specific foundation priority from their website].
Example: "Riverside Community Center, serving low-income families for 25 years, respectfully requests $50,000 from the Smith Foundation to expand after-school programming for at-risk youth. This project aligns with your foundation's commitment to educational equity for underserved communities."
How to Write Compelling Problem Statements
Formula: Local statistic → broader context → why problem persists → who suffers most
**Problem Statement Example:** Forty percent of elementary students in our county read below grade level, jeopardizing their future academic success. This mirrors national trends of pandemic-related learning loss, but our rural area lacks resources available in urban districts. Many families cannot afford tutoring, and schools lack funding for intervention programs. Low-income students and English language learners fall furthest behind, widening existing achievement gaps.
Foundation Research Checklist (Before Writing)
Research Requirements
| ✓ | Research Item | Why It Matters |
|---|---|---|
| ☐ | Accepts unsolicited LOIs? | Some only accept invited proposals |
| ☐ | Geographic focus | Must match your service area |
| ☐ | Issue priorities | Your project must align |
| ☐ | Grant size range | Request within their typical range |
| ☐ | Recent grants list | Shows actual (vs stated) priorities |
| ☐ | Application deadlines | Plan submission timing |
| ☐ | Submission method | Email, portal, or mail |
Budget Summary Template
**Budget Summary:** Total two-year project cost: $150,000 - Secured: $75,000 (school district) + $25,000 (individual donors) - Requested from [Foundation]: $50,000 Funds will support program staff (60%), materials (25%), and evaluation (15%). Cost per student served: $1,500 for two years of intensive support.
What LOI Mistakes Get Immediate Rejection?
These 5 mistakes kill LOIs:
1. Generic letters: Form letters sent to multiple foundations without customization. Personalize to each funder's specific priorities.
2. Exceeding page limits: Two pages means two pages. Tiny fonts and narrow margins signal inability to be concise.
3. Poor alignment: Applying outside their issue area, geography, or grant size. Don't assume they'll make exceptions.
4. Missing "why you": Qualifications section that doesn't explain why YOUR organization should do this work.
5. Typos: Sloppy writing suggests sloppy programs. Proofread carefully.
Frequently Asked Questions About LOIs
How is an LOI different from a full proposal?
LOIs are 1-2 page introductions; full proposals are 5-15+ pages with detailed budgets, timelines, and attachments. LOIs ask "Are you interested?" Full proposals ask "Will you fund us?" Many foundations use LOIs to screen before inviting full proposals.
Should I follow up after submitting?
Wait for their stated timeline before following up. If they say 4-6 weeks, don't call in 2 weeks. Patience shows respect. If you haven't heard after their stated timeline plus 1 week, a brief inquiry is appropriate.
What if I'm declined?
Thank them professionally and ask about reapplying. "May we apply again if we develop a project better aligned with your priorities?" Gracious response maintains relationship for future opportunities.
Can I submit to multiple foundations simultaneously?
Yes, but customize each LOI. Foundations expect you're approaching multiple funders. What they don't want is generic form letters. Tailor each LOI to that specific foundation's priorities.
Can AI help write LOIs?
Yes, AI tools like River's LOI Generator create structured letters of inquiry. Input your project details and the foundation's priorities, and the AI generates properly formatted LOIs with all 6 required sections. Always customize and verify alignment before submitting.
Letters of inquiry open doors to foundation funding by demonstrating fit between your work and their mission. Strong LOIs are concise, compelling, and carefully tailored. Use River's LOI Generator to create letters that get you invited to submit full proposals.