What is The Difference Between a Letter of Inquiry and a Letter of Intent?

You found a foundation that looks like a good match for your nonprofit.

Then you read the application instructions and see:

“Submit an LOI.”

Piece of cake.

Except that LOI could mean different things.

In nonprofit grant funding, LOI commonly stands for Letter of Inquiry. Some funders, however, use LOI for Letter of Intent or even Letter of Interest.

And they do not use the terms in exactly the same way.

What is the difference between a Letter of Inquiry and a Letter of Intent then?

Simple answer: a Letter of Inquiry introduces your nonprofit and funding request and determines whether the funder is interested in reviewing a fuller proposal. A Letter of Intent informs the funder about your intention to apply for a particular funding opportunity. Still, foundations use the terms inconsistently, so the funder’s own instructions are always your guide.

That last point is crucial.

The best Letter of Inquiry in the world will not help if it was not what the funder asked for.

Still searching for matching foundations that accept LOIs? Take a look at our detailed guide on how to find foundations that accept LOIs.

Once you have found a foundation that requests an LOI and are ready to write one, use our step-by-step guide on how to write an LOI for grant funding.

First, let’s look at that terminology.

Letter of Inquiry vs. Letter of Intent: Quick Comparison

The catch: those are not universal definitions.

Northwestern University’s Foundation Relations guidance describes a Letter of Inquiry as a brief first contact that foundations may use to decide if they want to see a full proposal. In addition, the university notes that some foundations ask for a Letter of Intent as a part of a formal Request for Proposal process. See Northwestern’s guide on Letters of Inquiry.

At Baylor University, for instance, Foundation Relations mentions that some private foundations use Letter of Inquiry and Letter of Intent interchangeably as a part of preliminary steps before issuing an invitation for a full proposal.

That is why nonprofits should pay attention not to the term itself, but rather to what the funder expects.

What Is a Letter of Inquiry?

A Letter of Inquiry is a brief document sent to a potential funder to introduce your organization, describe the need and funding request and determine if the foundation wants to learn more.

According to the Council on Foundations, a Letter of Inquiry is a brief letter outlining an organization’s activities and funding request sent to determine whether there is enough interest to send a full proposal. Find out more about the Council on Foundations’ glossary of philanthropic terms.

A Letter of Inquiry is:

“Here is who we are, what we want to accomplish, why we believe our work aligns with your giving and what we are asking for. Would you like to continue the discussion?”

It does not usually include all the details that a full grant proposal does.

The foundation may use an LOI to determine if your nonprofit is worth moving to the next stage.

That helps save time on both sides.

This way, your nonprofit doesn’t waste hours preparing a full proposal for a project that the foundation would not likely consider.

And the foundation doesn’t spend its time reviewing hundreds of lengthy proposals from organizations that are not aligned with its priorities.

What Is Usually Included in a Letter of Inquiry?

The specific requirements may vary from funder to funder, but a foundation LOI usually includes the following:

Name and mission of your nonprofit
Population served by the nonprofit
Need addressed by the nonprofit
Project or program for which the funding is sought
Amount being requested
Expected impact
Why your organization is able to deliver the work
How the request fits the funder’s priorities
Basic information about the budget, if required
Contact information
Next step

The foundation’s instructions determine the content and length of the inquiry, while a typical LOI contains sufficient information to give the funder understanding of the problem, project and proposed solution without requiring a full proposal.

That is a significant difference.

An LOI is short, but needs to make a case.

What Is a Letter of Intent in Grant Funding?

A Letter of Intent is generally an announcement by a nonprofit to a potential funder that it intends to submit an application for a funding opportunity.

It is similar to:

“We intend to apply, and here is the basic information about our project.”

Letters of Intent are often used in formal government, academic and research funding processes.

For instance, the National Institutes of Health has used Letters of Intent in funding opportunities to estimate the number and type of applications they are going to receive and prepare for the review process. That type of Letter of Intent usually includes basic information about the proposed project such as its title, key personnel, participating institutions and the funding opportunity. Check an NIH Letter of Intent example and explanation.

A Letter of Intent does not necessarily mean that the funder is interested in funding you.

Also, depending on the funding opportunity, submitting the Letter of Intent is not necessarily mandatory or binding.

It again depends on the specific funding opportunity.

Why Are Letter of Inquiry and Letter of Intent Called LOIs?

Because grant terminology is not as standardized as one might wish it to be.

LOI can stand for:

Letter of Inquiry
Letter of Intent
Letter of Interest
Some foundations may use similar terms such as:
Concept paper
Pre-proposal
Preliminary proposal
Initial inquiry
Pre-application
Expression of interest

So, when you see an LOI, do not immediately grab your standard template.

First ask yourself:

What does this funder mean by LOI?

Is a Letter of Inquiry the Same as a Letter of Intent?

Not always.

Some grant processes treat a Letter of Inquiry and a Letter of Intent as separate documents.

In other processes, the funder may treat Letter of Inquiry and Letter of Intent almost interchangeably.

There is no universal rule saying:

A Letter of Inquiry always contains X, while a Letter of Intent always contains Y.

There are common patterns, but the funder’s instructions take priority.

The terminology changes. The instructions matter more than the term.

What Is the Main Purpose of a Letter of Inquiry?

The main purpose of a Letter of Inquiry for grants is to help a funder decide:

“Do we want to know more about this organization and request?”

It is a screening tool.

The funder may review your LOI and:

Issue an invitation for a full proposal
Ask for additional information
Schedule a conversation
Decline the request
Consider your nonprofit for future funding opportunities
Provide instructions for the next step
A Letter of Inquiry is, therefore, much more than a short grant proposal.
It is your first case for fit.

Instead of:

“We are a great organization doing great things and need $50,000.”

The LOI demonstrates:

“You have shown interest in this problem. Our organization deals with this problem in this community. Here is the need, our approach, the expected impact and why we believe that there may be a good fit.”

That is why foundation research should be done before you write the LOI.

If you have not qualified the foundation yet, check out our guide on how to qualify foundations for nonprofit grants before sending an LOI.

What Is the Main Purpose of a Letter of Intent?

The main purpose of a Letter of Intent is somewhat different.

Instead of asking:

“Would you like to know more?”

a Letter of Intent announces:

“We are planning to apply for this opportunity.”

The funder may use Letters of Intent to:

Estimate application volume
Prepare reviewers
Identify required expertise
Confirm applicant interest
Pre-screen applicants before the full application
Gather basic information about proposed projects

Does a Letter of Intent Mean You Are Guaranteed Funding?

No.

Submitting a Letter of Intent does not mean that you have received the funding.

It does not even mean that you have moved forward in the application process.

In many grant programs, the Letter of Intent is only one of the steps before the formal application.

As stated in NIH funding opportunities, the Letter of Intent may be non-binding and is used, among other reasons, to allow the agency to plan the review process.

You need to read the instructions of a particular funding opportunity to find out:

Whether the Letter of Intent is required
Whether it is optional
Whether it is binding
Whether it is reviewed competitively
What information should be included
Whether the approval is required before the full application

Is a Letter of Inquiry the Same as a Letter of Interest?

Sometimes yes, and sometimes not.

While some organizations use Letter of Interest as another name for an early-stage inquiry, others differentiate between these two terms.

Another reason for confusion caused by LOI acronym.

If the funder asks for a Letter of Interest, you need to follow its terminology.

If the funder asks for a Letter of Inquiry, you need to write a Letter of Inquiry.

It makes little sense to try to educate the funder about terminology.

You need to provide the information it asks for in the required format.

Letter of Inquiry vs. Grant Proposal

The Letter of Inquiry is also different from a full grant proposal.

An LOI is usually shorter and used prior to a full proposal.

A grant proposal requires much more information.

According to the University of Washington, the Letter of Inquiry is a type of a first filter that foundations may use to determine whether a project fits their priorities and deserves a full proposal.

This is precisely what nonprofits need to keep in mind.

The LOI does not need to say everything. It needs to make the funder want the next conversation.

Do All Foundations Require a Letter of Inquiry?

No.

Foundation application processes may vary greatly.

The foundation might:

Require LOI before a full proposal
Accept unsolicited LOI
Accept unsolicited full proposals
Use online eligibility questionnaire
Ask for concept paper
Accept applications during a defined cycle
Be invitation-only
Have no public application instructions at all
That is why identifying a foundation is just a starting point.

Before submitting any documents, determine:

Does the foundation accept unsolicited outreach?

Does it require an LOI?

Does it require another type of preliminary application?

Is it invitation-only?

Does it accept applications now?

Our pillar guide on how to find foundations that accept LOIs covers the process of researching those questions using foundation websites, history, 990-PF information, past grantees and even outreach.

How Do You Know What Kind of LOI a Funder Wants?

Start with the funder’s instructions.

Look for sections such as:

How to Apply
Application Guidelines
Grant Guidelines
Funding Opportunities
For Grantseekers
Letter of Inquiry
Letter of Intent
Concept Paper
Preliminary Proposal
Expression of Interest
Pre-Application

Then look for information about:

Required length
Questions to be answered
Submission method
Deadline
Required attachments
Budget information
Eligibility
Funding amount
Contact restrictions

If the funder says:

Submit a two-page Letter of Inquiry answering the following five questions …

Do exactly that.

Do not submit your standard four-page LOI because that is how you usually do it.

If the funder asks for a 500-word online inquiry, submit 500 words.

If it asks for a one-page letter of intent, provide a one-page letter of intent.

Compliance with instructions is part of the application process.

What if the Foundation Uses “Letter of Intent” but Appears to Mean “Letter of Inquiry”?

Use the funder’s terminology.

This happens frequently.

Let’s suppose that the foundation states:

Submit a Letter of Intent that introduces your organization, outlines your project, states the amount requested and explains how the request aligns with our priorities. We will invite selected organizations to submit a full proposal.

Functionally, this sounds almost identical to what many funders refer to as a Letter of Inquiry.

However, the foundation refers to it as a Letter of Intent.

So that’s what you should call it too.

Don’t let yourself get bogged down in definitions.

Instead, focus on:

Information needed.

Purpose of this stage.

What happens next.

How the funder describes the document.

That is what really matters.

Should You Submit an LOI If the Foundation Does Not Ask for One?

Not necessarily.

Just because a foundation has no application instructions does not mean it accepts unsolicited Letters of Inquiry.

Before sending anything, conduct additional research.

Review:

Website of the funder
Application policies of the funder
Previous grantees
Geographic giving
Funding interests
Grant sizes
Recent grants
Contact details
Repeat giving to new organizations
Whether it prohibits unsolicited inquiries

Even though a funder may be a great match for your cause, it can still refuse unsolicited proposals.

Likewise, even if a funder welcomes LOIs, it can be a bad fit for your organization.

Access does not equate to alignment.

This is one of the most important ideas in philanthropic fundraising.

In case there is any ambiguity, our article on locating foundations that accept LOIs and unsolicited proposals provides tips for researching the funder before initiating contact.

Why Research Is Critical Before You Create Either Document

It is easy to focus on the document itself.

But, the bigger issue is whether you should be creating it at all.

Before drafting an inquiry letter, conduct the following research:

Cause fit

Does the funder actually fund such work?

Geographic fit

Does it give grants in your city, state, province, region or country?

Grant-size fit

Are the previous grants close enough to what you need?

Grantee fit

Has it supported organizations similar to yours?

Type of funding

Does it fund programs, operations, capital projects or whatever you request?

Application process

Does it accept the type of outreach you plan to send?

The most beautifully crafted LOI won’t be able to overcome the lack of fit.

Here is when the historical research of foundations comes into play.

Through Grant Advance’s Foundation Profile Pages nonprofits have access to information such as previous grantees, giving history, grant amounts, directors and contact information to evaluate potential funders.

In case you are still putting together your prospect list, our grant search engines for nonprofits will help you conduct foundation research beyond a basic Google search.

What Happens Next Once You Send a Letter of Inquiry?

Depending on funder interest, you can expect:

Invitation for a full proposal.
Request for additional information.
Request for a meeting.
Request for budget.
Questions about your organization.
A formal application.
Internal review of your proposal.

But, sometimes you can get a:

No.

Or sometimes nothing at all.

It doesn’t mean that you should immediately send three more emails.

First, follow the timeline of the funder.

If no timeline is set, your follow-up email should be polite and professional.

Grant Advance provides a full guide on what to do if a foundation doesn’t respond to your LOI.

And remember that LOI is just one component of a lengthy relationship-building process. Our article on building relationships with foundations explains how outreach, follow-up and stewardship complement each other over time.

Common LOI Terminology Quick Reference Guide

Term	What It Often Means
Letter of Inquiry	A short introduction used to gauge funder interest before submitting a full proposal
Letter of Intent	Notice of intent to apply; sometimes a term used by foundations to describe an LOI
Letter of Interest	Expression of interest in being considered for funding; usage varies
Concept Paper	Short summary of a proposed project or idea
Pre-Proposal	Preliminary submission before a full proposal
Pre-Application	Early application stage before a complete proposal
Expression of Interest	Statement indicating the desire to be considered
Full Proposal	Detailed funding request submitted for formal review

Important words in the table above are:

“often” and “may.”

Terminology changes from funder to funder.

So, always check the definition of the individual funder.

Letter of Inquiry vs. Letter of Intent

A Letter of Inquiry and a Letter of Intent can both be abbreviated as LOI, but they often serve different purposes in the grant process. Because funders do not always use these terms consistently, nonprofits should always follow the terminology and requirements provided by the individual funder.

Category	Letter of Inquiry	Letter of Intent
Primary purpose	Introduces your nonprofit and funding request to determine whether the funder is interested	Signals that your organization intends to apply for a specific funding opportunity
Common use	Frequently used in foundation fundraising	Common in formal grant, government, academic and research funding processes
Main question it answers	“Is this a funding opportunity worth exploring together?”	“Do you intend to submit a full application?”
When it is submitted	Often before a funder invites a full proposal	Usually before a formal grant application or proposal deadline
Typical content	Nonprofit mission, funding need, proposed project, amount requested, expected impact and funder alignment	Applicant information, proposed project, key participants and basic details about the planned application
Level of detail	Brief overview designed to establish fit and interest	Usually provides enough information for the funder to understand the planned application
Funding request	Often includes the amount being requested	May or may not include a specific funding request, depending on the funder
What may happen next	The foundation may invite a full proposal, request more information or decline	The applicant usually proceeds to the formal application process if eligible
Is it a funding decision?	No	No
Can it be called an LOI?	Yes	Yes
Are the terms always used differently?	No. Some funders use Letter of Inquiry, Letter of Intent and even Letter of Interest interchangeably	No. The funder’s own definition and instructions should always take priority

Quick answer: A Letter of Inquiry generally introduces a nonprofit and funding request to determine whether a funder wants to learn more, while a Letter of Intent usually tells a funder that an organization plans to submit a formal application. However, some funders use the terms interchangeably, so always check what LOI means in that specific grant process.

Letter of Inquiry vs. Grant Proposal

A Letter of Inquiry is also different from a full grant proposal.

A Letter of Inquiry is typically shorter and is often used before a full proposal.

A grant proposal usually requires much more detail.

Letter of Inquiry	Full Grant Proposal
Brief introduction	Detailed funding request
Often 1–3 pages, unless otherwise specified	Length varies considerably
Establishes interest and alignment	Makes the full case for funding
Limited project detail	Detailed methodology and activities
May include basic budget information	Often includes detailed budget
Often comes before an invitation	Usually part of formal consideration
Designed to open the door	Designed to secure the award

Want to Find More Foundations for Funding Opportunities?

If you’ve grown tired of finding foundations one website at a time, Grant Advance Solutions can help you identify funders matching the mission, location and funding needs of your nonprofit.

You’ll be able to research real foundation giving history, explore potential funders and develop a more customized outreach strategy prior to sending your next LOI.

Book a free consultation with Grant Advance and discover foundations that can be a great match for your organization.