A letter of inquiry (LOI) is often the first serious conversation between your nonprofit and a potential funder. It is short, but it can determine whether your organization receives an invitation to submit a full grant application.
For development teams in Miami-Dade, Broward, Palm Beach, Alameda, Contra Costa, Marin, and San Francisco counties, the LOI is especially important. Many local funders receive more requests than they can support. A concise, well-positioned inquiry helps a program officer quickly answer three questions:
- Does this organization fit our funding priorities?
- Is the proposed work relevant, timely, and feasible?
- Should we invite a full application?
The goal is not to include every detail about your organization. The goal is to make the right funder want to learn more.
What a Letter of Inquiry Is—and Is Not
A letter of inquiry is a brief summary of a potential funding request. Some foundations use LOIs as a required first stage. Others accept them informally before inviting selected organizations to submit a full proposal. The format may be an email, online form, or two- to three-page document.
An LOI usually includes:
- A brief description of your organization
- The problem or opportunity you are addressing
- Your proposed program or project
- The community you serve
- The amount requested and total project budget
- Your expected outcomes
- A clear connection to the funder's priorities
- Contact information and next steps
An LOI is not a shortened version of a full grant application. It should not contain a long organizational history, a complete work plan, every program statistic, or pages of general background. If a funder requests a specific format or word count, follow those instructions exactly.
Before drafting, review the funder's current guidelines. Requirements can differ significantly. The Children's Trust may emphasize children and families in Miami-Dade County, while the Health Foundation of South Florida may focus on health-related needs in Miami-Dade, Broward, and Palm Beach counties. The Miami Foundation and Knight Foundation may have different geographic, programmatic, or invitation requirements. A letter that works for one funder may be a poor fit for another.
The same principle applies in the Bay Area. The San Francisco Foundation, Walter & Elise Haas Fund, Hellman Foundation, Marin Community Foundation, and Silicon Valley Community Foundation each have distinct interests, processes, and expectations. Use a funder directory to research local priorities and past awards before you write.
Step 1: Confirm That the Funder Is a Realistic Fit
The most common LOI mistake happens before writing begins: the nonprofit chooses a funder based on name recognition rather than fit.
A strong match usually includes several forms of alignment:
- Geographic fit: Your program serves the counties or communities the funder supports.
- Population fit: Your participants match the funder's stated focus.
- Program fit: Your activities fall within an eligible grant category.
- Organizational fit: Your nonprofit meets requirements related to tax status, budget, operating history, or fiscal sponsorship.
- Timing fit: Your project and request align with the funder's application cycle.
- Funding fit: Your request is within the funder's typical award range.
For example, a youth-serving nonprofit in Broward County should not simply write that it supports young people. It should determine whether the funder supports Broward County, whether the relevant age group is eligible, whether the proposed services are allowable, and whether the request size is reasonable compared with prior awards.
A workforce program in Alameda or Contra Costa counties should conduct the same analysis. Does the funder support direct services, employer partnerships, training, policy work, or only a specific population? Does it fund general operating support, project expenses, capital needs, or evaluation?
Create a one-page fit check before drafting. List the funder's stated priorities in one column and your program's evidence in another. If you cannot make a credible connection, do not force one. A respectful decision not to apply is better than spending hours on an application that was unlikely to succeed.
Eligibility details are easy to overlook when teams are managing multiple deadlines. You can check your nonprofit's readiness and identify eligibility gaps before investing time in an LOI, including organizational status, required documents, and other common qualifications.
Step 2: Lead With the Community Need, Not Your Organization's History
The opening paragraph should tell the reader why the request matters now. Avoid beginning with a long description of when your nonprofit was founded or a list of awards. Those details may establish credibility later, but they rarely create urgency.
A more effective opening connects four elements:
- The community: Who is affected?
- The challenge: What barrier or condition are they experiencing?
- The consequence: Why does the issue matter?
- The response: What will your organization do?
For example:
> Families with young children in Miami-Dade County face persistent barriers to early learning, including limited access to affordable programs and support services. Our organization proposes to expand bilingual family navigation and early-learning referrals for 300 families in neighborhoods where existing services are difficult to reach.
This opening gives the funder an immediate frame for the request. It identifies a population, a location, a problem, and an initial response without overwhelming the reader.
A Bay Area example might focus on a different issue:
> Low-income residents in San Francisco and Marin counties can face long delays in accessing behavioral health services, particularly when language, transportation, and referral barriers overlap. Our proposed project would place trained community navigators in neighborhood-based settings to help 200 adults connect with appropriate care.
Use data when it clarifies the need, but do not turn the first paragraph into a data dump. One or two authoritative, relevant facts are usually more persuasive than a string of statistics. Explain what the data means for the people your organization serves.
Whenever possible, combine quantitative evidence with direct knowledge from your program. Participant feedback, wait-list information, service utilization patterns, focus groups, or community partnerships can show that the proposed work responds to a genuine need rather than a general concern.
Step 3: Explain the Proposed Work in Concrete Terms
Once the need is clear, describe what the grant would make possible. The funder should be able to picture the project without reading a full proposal.
Answer these questions directly:
- What activities will you conduct?
- Who will participate?
- Where will services take place?
- How often will they occur?
- Who will deliver them?
- What partnerships are involved?
- What will change as a result?
Avoid vague phrases such as “empower the community,” “create meaningful change,” or “address systemic inequities” unless you explain the actual activities behind them. Strong LOIs use specific verbs and quantities:
- Provide 12 financial coaching workshops
- Enroll 150 residents in a workforce training program
- Place 80 students in paid internships
- Train 25 peer navigators
- Conduct weekly legal clinics at three community sites
Specificity builds confidence. It shows that the program is developed enough to move forward while leaving room to provide greater detail in the full application.
The project description should also make clear what the grant will pay for. If the request supports a new program, say so. If it expands an existing service, explain what will change: additional participants, new locations, extended hours, new staff, improved evaluation, or stronger referral capacity.
Be honest about the project's stage. A pilot, expansion, and established program have different evidence and risks. Funders do not necessarily expect a new idea to have years of outcome data, but they do expect a credible plan for testing and learning.
Step 4: Make the Funder Connection Explicit
Do not make the funder guess why you are writing to them. State the connection between your project and the funder's priorities in clear language.
Weak:
> We believe this project aligns with your foundation's commitment to thriving communities.
Stronger:
> This request aligns with the foundation's focus on improving access to health services for underserved residents. By placing bilingual navigators in community settings across Broward and Palm Beach counties, the project addresses the access and referral barriers identified in that priority area.
The strongest connection is specific without pretending that your program addresses everything a funder cares about. Choose one or two relevant priorities and explain the overlap. Do not copy phrases from a website without showing how your work relates to them.
Researching prior awards can help you understand what a funder means by its stated priorities. Look for organizations with similar populations, program models, geography, and request sizes. Analyze past awardees and funding trends to see whether the funder has supported direct services, capacity building, research, advocacy, or general operating expenses.
For local nonprofits, this research can be particularly useful when approaching funders such as The Children's Trust, the Miami Foundation, Knight Foundation, or the Health Foundation of South Florida. In the Bay Area, compare your proposed work with the types of organizations and projects supported by the San Francisco Foundation, Hellman Foundation, Walter & Elise Haas Fund, Marin Community Foundation, or Silicon Valley Community Foundation.
Past awards are not a guarantee of future funding. They are clues about scale, language, geography, and program fit. If your organization differs from previous grantees, explain why the request still falls within the funder's priorities.
Step 5: Present a Credible Request and Budget
An LOI does not always require a detailed budget, but every request should communicate financial logic. State the amount requested, the estimated total project cost, and the primary uses of funds.
For example:
> We request $75,000 toward a $180,000 project budget. Grant funds would support a part-time program coordinator, participant transportation assistance, language access, and outcome tracking. The remaining costs would be covered through committed organizational funds and pending requests to other aligned funders.
This short explanation answers important questions:
- Is the request proportional to the project?
- Is the organization relying on one funder for the entire program?
- Are the proposed expenses connected to activities?
- Does the nonprofit have a plan for the balance of the budget?
If the funder allows general operating support, consider whether that is a better request than a narrowly restricted project. General operating support can give a nonprofit flexibility to sustain staff, infrastructure, and responsive services. However, never relabel general operations as a project if the funder does not allow it.
Avoid inflating the budget to make the request appear more substantial. A modest, well-supported request is more credible than an ambitious budget with no staffing plan, timeline, or matching resources.
If the project requires multiple funders, describe the broader financing plan without making the reader feel that their grant would be insignificant. Explain the distinct role their support would play. For example, one grant might fund direct services while another supports evaluation or technology.
Step 6: Define Outcomes That Matter
Funders want to know what their support will accomplish. An LOI should name a small number of measurable outcomes, but it should not read like a performance-management manual.
Distinguish between outputs and outcomes:
- An output is what you deliver: workshops, counseling sessions, referrals, training hours, or participants served.
- An outcome is what changes: improved knowledge, increased employment, better school attendance, reduced isolation, or stronger access to care.
Include both when useful. For example:
- Output: Provide 20 financial education sessions to 240 adults in San Francisco County.
- Outcome: At least 70 percent of participating adults will demonstrate improved financial planning knowledge, and 50 percent will complete an individualized action plan.
Choose indicators that your organization can realistically collect. If you currently track attendance and referrals but do not have a validated survey, do not promise a complex longitudinal study without explaining the resources required.
Outcomes should match the grant period. A 12-month grant may support increased service access, new skills, or improved short-term stability. It may not be reasonable to claim that the project will eliminate a community-wide problem.
Whenever possible, include a baseline or comparison point. “We will serve more people” is less informative than “We will increase annual enrollment from 120 to 180 participants while maintaining completion rates above 80 percent.”
Step 7: Establish Organizational Credibility Quickly
After describing the need and proposed project, give the funder enough information to trust your organization as a potential grantee.
A concise credibility paragraph may include:
- Years of relevant experience
- The population and geography served
- Current program scale
- A notable outcome or accomplishment
- Relevant partnerships
- Staff or leadership expertise
Keep the information connected to the request. If you are seeking support for a youth program in Miami-Dade County, describe your experience serving local children and families. If you are proposing a community health project in Alameda or Contra Costa County, emphasize relevant service delivery, referral, or public health experience.
Do not rely only on organizational age. A newer nonprofit can establish credibility through experienced staff, strong community partnerships, a well-designed pilot, or demonstrated demand. Conversely, a long operating history does not substitute for a clear plan.
If the organization is fiscally sponsored, explain the arrangement briefly and confirm that the proposed activity is eligible under the sponsor's structure. If the funder requires 501(c)(3) status, verify that requirement before submitting. Do not bury a significant eligibility issue in the final paragraph.
A Practical LOI Structure
Unless a funder provides a required format, the following structure works for many two-page inquiries:
1. Salutation and opening request
Address a named program officer when possible. State the amount requested, the project name, and the community served in the first paragraph.
2. Community need
Describe the specific problem, who experiences it, and why the issue is timely. Include one or two relevant data points or community observations.
3. Proposed project
Explain the activities, participants, location, timeline, and delivery approach. Use concrete numbers.
4. Expected results
Name two to four outputs or outcomes and explain how you will measure them.
5. Organizational capacity
Summarize your relevant experience, partnerships, and ability to manage the work.
6. Funding request and budget
State the request, total project cost, major expenses, and other funding sources or plans.
7. Funder alignment and next step
Restate the connection to the funder's priorities and ask whether the concept fits the foundation's interests or full proposal process.
8. Contact information
Include the appropriate staff contact, title, email, phone number, and website if requested.
This structure can be adapted for an online form. When a portal asks the same question in several ways, avoid repeating identical paragraphs. Give each answer a distinct purpose and maintain consistent numbers throughout.
Common LOI Mistakes That Reduce Response Rates
Writing one generic letter for every funder
A generic LOI often contains broad language about the nonprofit but little evidence of funder fit. Customize the opening, priority connection, request amount, and relevant outcomes for each recipient.
Leading with organizational history
A long history section delays the answer to the funder's central question: why this project, for this community, now? Move the most relevant organizational evidence closer to the project description.
Using unsupported claims
Statements such as “the need is greater than ever” or “our program is the only solution” require evidence. Replace them with specific, supportable observations.
Asking for an unclear amount
A funder should not have to calculate your request from a table or infer it from a sentence. State the amount plainly and make sure it matches the budget.
Promising too much
An LOI with a long list of activities and sweeping outcomes can appear unrealistic. Prioritize the work the grant can actually support.
Ignoring geographic eligibility
Mentioning a county is not enough. Confirm whether the funder supports work in Miami-Dade, Broward, Palm Beach, Alameda, Contra Costa, Marin, or San Francisco counties, as applicable, and whether the program serves an eligible community.
Missing instructions
Some funders do not accept unsolicited LOIs. Others require a specific portal, deadline, subject line, page limit, or invitation. Treat those requirements as part of the application—not administrative details to handle later.
Submitting without review
Ask someone outside the program team to read the LOI. Can they explain the need, project, amount, target population, and expected results after one reading? If not, revise for clarity.
A structured review can also help identify contradictions in the budget, unclear outcomes, or unanswered eligibility questions. Use an application review and scoring workflow to test whether the draft is persuasive and complete before submission.
A Final LOI Checklist
Before sending the letter, confirm that:
- The funder accepts LOIs or has invited your organization to submit one.
- Your program and geography are eligible.
- The request amount is consistent with the funder's typical support.
- The first paragraph identifies the project, population, location, and request.
- The need is specific and supported by credible information.
- The proposed activities are concrete and feasible.
- The outcomes are measurable and appropriate for the grant period.
- The organization has relevant experience or a credible partnership plan.
- The budget and narrative use the same numbers.
- The connection to the funder's priorities is explicit.
- The letter follows all format, word-count, and submission instructions.
- A second reader has reviewed the final draft.
- The next deadline and follow-up date are recorded.
Do not wait until submission day to manage the final item. Use a deadline calendar and reminders to track LOI dates, invitation windows, full application deadlines, and follow-up tasks across your pipeline.
What to Do After Submitting an LOI
A submitted LOI is not the end of the process. Save the final version, budget, attachments, and submission confirmation in a shared location. Record the date submitted, expected response timeline, staff owner, and any restrictions on follow-up.
If the funder invites a full application, compare the invitation with your original LOI. Confirm whether the requested amount, project scope, budget, or outcomes have changed. Do not assume that an invitation guarantees funding; the full proposal is a separate evaluation.
If the funder declines, review the response carefully. Some funders provide useful feedback about fit, timing, competitiveness, or available funds. A decline may mean the proposal was not eligible, the request was outside the funder's current focus, or the funder had more strong applications than it could support.
Use the experience to improve future inquiries. Track which messages generated conversations, which funders requested full proposals, and which outcomes or evidence funders asked you to clarify. Over time, this creates an internal library of tested language without turning future LOIs into copied templates.
Conclusion: Make the Next Conversation Easy
A successful letter of inquiry makes a funder's next step easy. It presents a specific community need, a credible response, measurable results, a reasonable request, and a clear reason the funder should care.
For nonprofits in South Florida, that may mean tailoring the letter to priorities relevant to Miami-Dade, Broward, or Palm Beach County and researching funders such as The Children's Trust, the Miami Foundation, Knight Foundation, or the Health Foundation of South Florida. For Bay Area organizations, it may mean demonstrating fit with priorities and past awards from the San Francisco Foundation, Hellman Foundation, Walter & Elise Haas Fund, Marin Community Foundation, or Silicon Valley Community Foundation.
Start with fit, write for the funder's decision process, and edit until every paragraph advances the request. When you are ready to turn the concept into a polished inquiry, draft and refine your LOI with the funder's requirements, budget, and outcomes in view.