Developing a Letter of Intent
A federal agency may require applicants to submit a Letter of Intent before submitting a grant application, or it may be optional. These types of letters are less common for philanthropic foundations. Writing a compelling letter that clearly outlines your idea may pique the funder’s interest in your project early on and distinguish you from other applicants, especially those who do not bother to take advantage of submitting an optional letter. Whether required or optional, use any opportunity that is available to send a concise but convincing snapshot of your grant proposal by writing a notable Letter of Intent.
What is a Letter of Intent?
A Letter of Intent is a formal document that is written for the purpose of expressing your interest in a grant program and your intention to submit a full proposal to the funding agency or foundation. The letter should show that your idea fits the grant program's specific purpose.
Think of the Letter of Intent as similar to a cover letter for a job application. It functions as a quick screening tool that saves time for both the applicant and the funder by first determining if a project matches the funder's goals before a full proposal is written. The Letter should convey a project’s purpose, anticipated outcomes, and financial requirements. It should also indicate your organization’s capacity, expertise, and experience to manage the proposed project successfully.
Finally, include your organization’s reputation as a responsible steward of public or private funding. Reference other grant awards and their amounts, a record of clean audits, and stability or the number of years in existence.
Just like an interview for a job, your Letter of Intent should quickly and convincingly demonstrate that your organization and proposal are worth serious consideration. Under no circumstances should the letter be lengthy, detailed, or disorganized. Whether the letter is submitted electronically or sent by mail, your first impression should count. Make it a good one.
Why are Letters of Intent Required or Optional?
Funders may require a Letter of Intent to gauge the volume of applications they will receive, prepare for an adequate number of reviewers to read and score the anticipated volume of grant applications, and allow adequate time to announce awarded projects. Keep in mind that more complex projects with the potential to be awarded significant sums of money will take an agency longer to review than smaller, less costly projects.
Federal agencies and foundations may require Letters of Intent to determine whether there are enough potential applicants with worthwhile proposals. If there is an insufficient number of meaningful projects, the deadline to submit a Letter of Intent may be extended to generate interest in the grant opportunity from other organizations, or the solicitation may be postponed or canceled altogether.
If a Letter of Intent is optional, get ahead of your competition and take advantage of the opportunity. Funders want to know which applicants are serious and worthy of their investment.
Instructions for Writing a Letter of Intent to Apply (for a grant)
Write a formal letter, not an email (unless instructions to email are posted)
Your letter is likely the first impression a funder will have of your organization. Like a job interview, impressions are often formed within seconds. Do not print the letter on cheap copy paper. Select high-quality vellum. Make sure your organization’s logo stands out across the top.
If you are sending an email, post the body of the letter in the email and as an attachment either in Word or as a PDF. Some email spam filters will automatically mark emails with attachments as junk. Don’t take the chance. Limit the letter to no more than one-and-a-half to two pages, not more.
A personal salutation
A letter should be addressed to an individual, not a generic “Dear Sir or Madam.” If you do not know the name of the Program Manager at the federal agency or a foundation’s Development Officer, or Chief Executive Officer, you will have to research who this is. You may be able to find out through a Google search, using Candid’s foundation directory, or phoning the agency or foundation.
Introduction
Introduce who you are, your position at your organization, and the title and purpose of your proposed project. State the mission of your organization. Identify how old it is.
The “Hook”
Briefly state the need for your project. Provide data, statistics, or an anecdotal story that supports why you intend to apply for a grant from [name of agency or foundation]. Identify who will be served, where the project will occur, and your timeframe. Aim to capture the funder’s interest.
Alignment with funder and grant opportunity
Clearly state how your proposed project aligns with (1) the mission of the funding agency or foundation and (2) the purpose of the grant opportunity. Keep your explanation concise.
Goals and Objectives of your project
Using bullet points or numbers, identify at least three goals and objectives of [repeat name of your project, for emphasis]. Goals should be broad, long-term outcomes that will be achieved if your project is funded, and objectives should be specific, short-term actions or activities that help you reach your project's goals. Bullets or numbered text help the reader quickly read your letter, gauge whether you have carefully thought through your project idea, and whether you are proposing a realistic project.
Project Cost
State the financial needs of your project and if other funds or “in-kind” goods or services will support the project and from whom. Do not use the word “approximately” when identifying your project budget.
State that your organization can demonstrate competence in fiscal management by its previous grants (if any), a certified record of clean financial audits, and references.
Other
If the funding agency or foundation requests other information, include it. For example, they may ask if you have had previous funding from them and when. You may be asked to name and state the qualifications of a Project Director or Program Manager.
Summary
State that you are confident in the ability of [name of your organization] to be a responsible steward of grant funding. Reiterate that [name of your project] will [state one or two benefits of the project, if funded]. Thank the funder for considering your letter. Identify how you can be reached by phone or email. Invite them to visit your website or social media.
Signature
The letter should be signed by a person and their title indicating their position of authority. An Executive Director, a member of your Board of Directors, or a dean or Department Chair are good examples.
Attachments
Attachments are rarely used and should be included only if they serve a purpose. A pamphlet, news article, press release, or List of Previous Grant Awards are examples.
Tips
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Use organization letterhead.
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Include the organization’s street address, P.O. Box, phone number, and website.
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Date the letter.
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No more than 1.5 pages, 2 at most.
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Use standard margins, .75” or 1”.
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Edit for spelling mistakes and grammar.
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Use a readable font like 11- or 12-point Calibri or Times New Roman.
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Don’t overcrowd the pages with too much text. Use at least 1.2-line spacing. Use white space between paragraphs at least .5” to 1”.
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Avoid too much detail. Keep sentences brief but informative.
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Introduce each paragraph with bold-face type words such as Purpose, Organization Mission, Project Description, Goals & Objectives, Budget, Background, Alignment.
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Avoid abbreviations, technical terms, acronyms, or jargon.
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Cite data or statistics only if it is relevant to your proposal.
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If you have known partners, name them in the body of the letter or as an attachment.
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Use active verbs; do not write in the past tense.
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Be specific with your language. Do not over-describe or use unnecessary words.
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Do not overthink or overwrite. Tell your story or make your case but be succinct.
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If your proposal does not align with the purpose of the funder or the grant program, do not try to make your idea fit. Don’t assume alignment is obvious. Connect your program to the stated priorities using concrete language.
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Do not use a generic template or an AI-generated letter. Your letter should sound personal, authentic, and interesting. AI can’t achieve this.
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Ask others to read your letter. Incorporate any helpful feedback.
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If there is a deadline to submit the letter, make sure you submit it on time. Don’t submit a letter after the stated deadline.
What if you don’t hear back?
It happens. Allow at least thirty days unless the grant application is due before then. In that case, you may decide to go ahead and submit your application.
Follow up with a very brief letter, phone call or email. Ask for feedback.
If you receive a rejection letter, follow up with a thank-you note thanking the agency or the foundation for their consideration. Few people will take the time to extend this courtesy. Be professional and say thank you. The next time you contact them, you are more likely to be remembered.