A Complete Guide for Nonprofits 

Let’s face it, there are a lot of ways to raise money for your nonprofit, and some of them are far more time consuming than others. Some nonprofits rely solely on events and robust support from their community. Some go through the arduous task of applying for government grants. One way for nonprofits to diversify their funding streams is to add foundation grants into their toolkit.  

So how do we do that? 

Securing grant funding often starts with one critical step: the Letter of Inquiry (LOI). 

For many private foundations—especially the 90% that don’t have public websites—an LOI is your first (and sometimes only) opportunity to make a strong impression. A well-crafted LOI can open the door to funding, while a weak one can quietly close it. 

In this guide, we’ll walk you through exactly how to write an LOI that gets noticed, including structure, examples, and insider tips used by successful nonprofits. 

What Is a Letter of Inquiry (LOI)?

A Letter of Inquiry (LOI) is a brief, targeted letter that introduces your organization and project to a foundatio. 

Think of it as: 

  • A first impression  
  • A screening tool for funders  
  • A way to earn an invitation to submit a full grant proposal 

Most LOIs are only 1–2 pages long and focus on alignment, clarity, and impact. 

When Do Foundations Require an LOI? 

Many foundations prefer LOIs before accepting full proposals, as it allows them to: 

  • Quickly assess alignment with their mission  
  • Manage the volume of applications  
  • Identify high-potential opportunities  

This is especially true for private family foundations, many of which: 

  • Do not have websites  
  • Do not publicly list application processes  
  • Rely on direct outreach and relationship-building  

This is where strategy matters—and where there can be missed opportunities. 

What to do before you sit down to write an LOI 

Gather your case for support.  Include: 

  • The specific project you wish to fund. – I can’t stress enough just how important it is to stick to one single project rather than giving a wishlist of items you require to be funded. 
  • State how much you need in total to implement the project. 
  • Have your charitable registration available. A foundation will want to know you are eligible to issue tax receipts. 
  • Statistical evidence of the need. 
  • Evidence of how your work is meeting that need. 
  • Have your budget for the program or project available 
  • A brief description of your sustainability 

Once you have those ‘ducks’ in a row, you are ready to start putting your letter together concisely. 

What to Include in an LOI (Step-by-Step) 

1. Introduction 

Start with a clear, concise opening: 

  • Who you are – Give your charitable registration number straight after your name 
  • Why you’re reaching ou t- Don’t be shy. You need money. Tell them exactly how much you need and what it’s for. 
  • Your mission in one sentence  

Example: 

“The Literacy Group, (Charitable Registration Number) is dedicated to improving access to literacy programs for underserved youth in rural communities. We are seeking to expand our reach and partner with _________ school district. The full cost of this will be $XXXXX and we are hoping that the NAME of the FOUNDATION will consider a grant of $YYYYY dollars to purchase workbooks. We note that you have been very generous to programs like ours in the past year.” 

**This is your perfect opportunity to personalize and strengthen your opening by naming the foundation and specifying the alignment.** 

2. Connection & Alignment 

This is the most important section. 

Show that you’ve done your research: 

  • Describe your mission and project 
  • Reference the foundation’s giving history 
  • Highlight shared priorities  
  • Demonstrate a natural fit  
  • Do it in the first paragraph 

Pro Tip: Foundations fund organizations that mirror their past giving patterns. 

3. The Need 

Explain the problem you’re addressing: 

  • Use data + human impact. State the problem and then provide statistical evidence of what is needed to solve it. 
  • Keep it clear and focused  
  • Avoid being overly technical. Don’t use jargon.  

4. Your Methodology 

You’ve described the need. Here is where you present your solution to it. Discuss: 

  • Who it helps  
  • How it works 
  • Proof that it works. Give statistical evidence that backs up your assertion. 

Be specific, but concise. 

5. The Funding Request 

Clearly state: 

  • The amount requested  
  • What the funds will support  
  • How large a slice of your budget for that program the requested sum represents. 

Align your ask with the foundation’s typical grant size (this is critical). 

6. Closing 

Wrap up with: 

  • Gratitude  
  • A soft next step (not pushy)  

Example: 

“We would like to thank the FOUNDATION NAME for taking the time to consider our request. We welcome the opportunity to provide additional information or submit a full proposal at your request. A partnership with the FOUNDATION NAME would significantly impact our efforts to provide essential skills to underserved youth.” 

LOI Template (Simple Framework) 

Here’s a clean structure your team can reuse. Present your information in this order: 

[Organization Name] 
[Address] 
[Date] 
 
[Foundation Name] 
 
Dear [Name], Never use to whom it may concern or a generic sir/madam. Always use a named person to begin. 

Paragraph 1

Include the name of your organization, your charitable registration number, the name of the foundation to whom you are applying, the amount that you are requesting, a brief description of your project, and how the foundation’s interests fit with those of your organization. (alignment) 

Paragraph 2

 Include the name of your organization, the amount that you are requesting, a brief description of your project, and how the foundation’s interests fit with those of your organization. 

Paragraph 3

The Need (problem you solve) Describe the need in terms of the target population and the geographic impact. Explain how the project will meet that need through one or two statistical or demographic facts and examples or stories. 

Paragraph 4

Your Program (what you do) Make sure to describe the project clearly and how your proposal will meet the need as you’ve explained it. Include the primary aspects and activities as well as the name, title, and qualifications of the key persons responsible for overseeing and/or implementing the project. 

Paragraph 5

Project and organizational sustainability (how you will function even if the foundation doesn’t give.) If you are expecting other funding sources, or plan to approach other funders make brief mention of these initiatives. Also include other funding that has been committed to the project, including assets and resources of your own organization, gifts-in-kind (i.e. volunteers or office space), funding from any associations, individual donor commitments, and other foundation, corporate or government funding. Demonstrate how the program or project can be supported and sustained after the initial grant funding. 

Paragraph 6

Closing (thank you + next step) Restate the purpose of the project. Offer to answer any other questions they may have. Offer to forward further documentation such as, proof of charitable status, budgets, or financial statements. Thank them for taking the time to consider your request and conclude by specifically asking permission to submit a full propos
 
Sincerely, 
[Name] 

5 Mistakes That Kill LOIs 

Avoid these common pitfalls: 

❌ Being too generic 

Foundations can tell immediately if your LOI is copy-pasted. 

❌ Asking for the wrong amount 

If they typically give $10K, don’t ask for $100K and vice versa!. 

❌ Overloading with information 

An LOI is not a full proposal. 

❌ Ignoring alignment 

No alignment = no funding. 

❌ Weak or vague impact 

Be clear about outcomes. 

It is very important to note that granting officers are incredibly busy and can cut corners. Expect them to skim the first 3 paragraphs for the information they contain and will only continue to read if you’ve included all the information they need.  

DONT: 

  • Attach brochures or any other paperwork to the letter unless it is requested by the funder 
  • Include photos that will take up limited space 
  • Go over 2 pages 
  • Ask for a ‘shopping list’ of items or programs.  It’s fine to ask for an unrestricted grant or operating support. 

What Makes a Strong LOI? 

Successful LOIs are: 

  • Personalized – tailored to the foundation  
  • Aligned – based on actual giving history  
  • Clear – easy to read and understand  
  • Strategic – asks for the right amount  
  • Human – tells a meaningful story  

The Hidden Challenge Most Nonprofits Face 

Here’s the reality: 

Up to 90% of private foundations don’t have websites 

That means: 

  • You can’t Google them  
  • You can’t find application guidelines  
  • You don’t know who to contact  

And without that information, writing a strong LOI becomes incredibly difficult. 

How Grant Advance Helps 

At Grant Advance, we help nonprofits: 

  • Discover hidden private family foundations  
  • See real giving history and patterns  
  • Identify the right contact people  
  • Generate professional LOIs in minutes  

Instead of guessing, you’re working with real data—so your LOIs are: 

  • More targeted  
  • More aligned  
  • More successful  

Final Thoughts

A strong LOI isn’t about writing more—it’s about writing smarter. 

When you: 

  • Target the right foundations  
  • Align with their giving history  
  • Make a clear, compelling case  

You dramatically increase your chances of securing funding.

Find Funders

Ready to Find the Right Funders? 

If you want to: 

  • Stop guessing  
  • Find aligned foundations faster  
  • Write LOIs with confidence  

 Book a free consultation with Grant Advance and we’ll show you real funding opportunities tailored to your organization.