A Letter of Inquiry (LOI) is often the only thing standing between your nonprofit and a $50,000 grant. Funders use LOIs to filter — and most nonprofits fail at the filter, not the proposal.
This guide walks through what funders actually read for, what to include, and what to leave out. If you're staring at a blank page, start here.
What is a Letter of Inquiry?
An LOI (also called a "concept paper" or "letter of intent") is a 1-3 page document asking a funder to consider your project. It's not a full proposal — it's the first-round audition. If the funder likes what they see, they'll invite you to submit a full proposal.
Roughly 40-60% of foundations require an LOI before considering full proposals. Some use LOIs as a strict gate; others treat them as informal introductions. Read the funder's guidelines carefully.
The 5 elements funders look for
A strong LOI answers 5 questions, in this order:
- Who are you? (2-3 sentences on your nonprofit's mission and track record)
- What problem are you solving? (1 paragraph with a specific, quantified need)
- What's your solution? (1 paragraph on your program and why it works)
- Why does this align with the funder? (2-3 sentences connecting to their stated priorities)
- What are you asking for? (Specific dollar amount, project period, and expected outcomes)
Structure of a winning LOI
A tight, professional LOI follows this structure:
- Header: Your org name, address, EIN, contact info
- Salutation: Address the program officer by name (not "To whom it may concern")
- Opening paragraph: State your ask upfront — "We are writing to request a $25,000 grant to support our..."
- Organizational overview: 2-3 sentences on your mission and impact
- The problem: 1 paragraph with a specific, local, quantified problem
- Your program: 1 paragraph on how you're solving it
- Alignment: 2-3 sentences on why this matches the funder's priorities
- Budget and timeline: Bullet points on cost, project length, and 2-3 key outcomes
- Closing: Invitation to submit a full proposal, contact info, thank you
The 5 mistakes that get LOIs rejected
- Generic language — Using the same LOI for 10 different funders. Program officers notice.
- Vague outcomes — "We'll help many families" instead of "We'll serve 120 families in Cook County over 12 months."
- Wrong ask amount — Asking for $500,000 from a funder whose grants max out at $50,000.
- No alignment — Pitching a literacy program to a funder focused on environmental conservation.
- Bad formatting — Walls of text, no headers, no white space. Program officers read hundreds of these. Make yours easy to scan.
How long should an LOI be?
Most funders specify — usually 1-2 pages. If they don't specify, stick to 1.5 pages max. Program officers appreciate brevity, and shorter LOIs signal you can be concise (a good trait for grant writers).
What happens after you submit?
Response times vary wildly. Some funders reply within 2 weeks; others take 3-6 months. If you don't hear back within their stated response window, a polite follow-up email is fine (once).
If invited to submit a full proposal, congratulations — you've passed the highest-effort filter. Full proposals typically win at 30-60% rates from invited LOIs.
The fastest way to draft an LOI
Once you've found a grant that fits your mission, use a tool that auto-generates a first-draft LOI you can edit. RaiseRoot's Grant Search includes a one-click LOI generator on every result — it uses your organization profile to draft a starting template you can personalize in 15 minutes instead of 3 hours.