5 Components of an Effective Letter of Inquiry
Crafting a good Letter of Inquiry (LOI) is critical to establishing relationships with foundation donors because it will often determine whether or not you're organization is extended an invitation to submit a grant proposal. The LOI is more than just an introduction.
The LOI is basically a full grant proposal crammed into a few pages - preferably just two. Some foundations have specific guidelines regarding the LOI, while many do not. Whether or not the foundation provides guidelines, your LOI needs to be succinct but thoroughly detailed. The grant administrators of foundations don't have a lot of time because they're reading many LOIs.
How can you make your LOI stand out from the others?
Provide details in a well-organized framework. Within a larger framework of organization, there are five components that must be addressed by your LOI:
|
Component |
Framework |
|
1. Introduction |
Tell them what you're going to tell them. |
|
2. Problem Statement
3. Solution Strategies
4. Need Statement |
Tell them. |
|
5. Conclusion |
And then tell them what you told them. |
Introduction. Even if you have established contact with a program officer, be sure to open your LOI with a succinct description of your organization including your mission, vision, and scope. End this section with a description of the conceptual organization of the rest of your LOI - this is where you "tell them what you're going to tell them."
Problem Statement. In this section, you can build a compelling argument for action by being very specific. What problems need to be addressed? Describe only the problems that your agency and program can reasonably undertake. Who is experiencing these problems? Statistics are nice but a quick story about one person can help contextualize the numbers.
Solution Strategies. In this section, you need to illustrate how your program will fix the problems you've described. Be sure to offer these solutions in the respective order of the problems you have listed above. If there is any evidence that these strategies have been successful in the past, whether they were utilized by your organization or another, cite that evidence.
Need Statement. What do you need to implement the strategies you've described above? Explain what the donor's funds will enable your program to accomplish. If you've done your due diligence, then you should know how much money the foundation typically awards through their grants.
Chances are that their typical funding amount is less than the total annual cost of your program. The result is that the funding you're requesting will allow you to serve only a portion of your target population. If you divide your total annual budget by your total population served, you get a rough estimate of your cost-per-participant. This will allow you to say that the grant funds will serve XX number of people.
If this is necessary, then you should also discuss how you're going to get the remaining funds needed to successfully conduct the program. You can name other foundations from which you're requesting funds, even if those requests are still pending.
By now, you've "told them."
Conclusion. This is where you "tell them what you told them." Leave the reader with a larger perspective by recalling the problems, solutions, and needs. Remind the foundation know that, with their funding, your agency can achieve worth-while results.
Remember, you won't make your LOI stand out by saying that your organization is "doing good things for people." What things? What people? And what makes these things "good"?
