What should a grant writer do when a funder requires a letter of intent first?

What a letter of intent actually decides

A letter of intent, sometimes called a letter of inquiry or concept paper, exists so a funder can screen out mismatched requests before anyone invests in a full proposal. From the funder's side it is triage. From your side it is the only stage where you are competing against the widest field, because everyone who thinks they might qualify sends one. Many teams treat it as a quick two-page favor and then wonder why they were not invited to submit. The LOI is where most applicants are eliminated.

That means the LOI needs the same clarity of fit, need, and outcome as the full proposal, compressed into whatever length the funder allows. Program officers reading dozens of letters are looking for three things fast: does this organization do what we fund, is the request within our range, and can they describe a result. If any of those is muddy, the letter goes in the decline pile. Write for a skim, then reward a closer read with specifics. Related: How can a nonprofit grow its grant program without the tracking descending into chaos?

Keep reading: Why do nonprofits keep missing grant deadlines even when they have the funding lined up?, How should a nonprofit set up grant pipeline stages to track applications from start to finish?, Why does assigning a clear owner to every grant application prevent last-minute scrambles?. See how GrantWatchr helps you grant deadline tracking for nonprofits.

Treat the LOI as a separate deadline with its own owner

The most common operational mistake is logging only the full proposal deadline and treating the LOI as an informal step. In practice the LOI deadline is the hard one, because a missed LOI ends the process entirely. Track it as a distinct item with its own due date, owner, and status, and add a second item for the full proposal that is conditional on an invitation. When the invitation arrives, the second item becomes active and the clock is usually short, sometimes only a few weeks.

Also record the decision date the funder gives for LOI responses. Some foundations respond within a month, others take a full quarter, and a few never send declines at all. Knowing the expected response window tells you when to follow up and lets you plan capacity around the possible full proposal. Teams that skip this step end up with an invitation landing during a week when the writer is already buried in two other submissions. Related: Why does submitting through a funder's online portal take longer than teams expect?

Writing an LOI that earns the invitation

Lead with fit. The first paragraph should make it obvious why this funder and this project belong together, using the funder's own language for their priorities. Then state the need in concrete terms for the community you serve, the specific activity you are proposing, the amount you plan to request, and one or two measurable outcomes. Resist the urge to include organizational history beyond a sentence or two. The funder can ask for that later.

Keep the budget signal simple and accurate. If the funder asks for a total project cost and an amount requested, provide both and make sure the request lands inside the funder's typical range, which is usually visible in their published grant lists or annual report. Have someone outside the writing process read the letter cold and tell you in one sentence what you are asking for. If they cannot, neither can the program officer. Related: Why do nonprofits keep missing grant deadlines even when they have the funding lined up?

Setting up the full proposal before you know the answer

While waiting on the LOI response, do the preparation that does not depend on the outcome. Confirm which attachments the full proposal will require, check that your financial statements and board list are current, and draft the logic model or outcomes table if the funder uses one. If the invitation comes with a short turnaround, this groundwork is the difference between a calm submission and a rushed one.

If the LOI is declined, capture the reason if any was given and log it against the funder record so you do not repeat the same misfit next cycle. If you hear nothing by the stated response date, a brief polite check-in is appropriate. Either way, the LOI stage should leave you with a cleaner understanding of the funder than you had going in, which is useful even when the answer is no. Related: What should a nonprofit do when a grant application is declined by the funder?