How to Cultivate Funders through Letters of Intent and Follow-up

Securing funding for your organization often starts with a compelling Letter of Intent (LOI). Knowing when and how to send an LOI can significantly increase your chances of capturing the attention of potential funders. An LOI is appropriate in three primary scenarios: 

• A foundation operates on an invite-only basis 

• There is no stated formal application process

• The foundation specifically requests an LOI instead of a full proposal. 

LOIs can be sent to corporate, community, and family foundations, though each may require a different approach. It is important to tailor your LOI to the specific funder. To increase the likelihood of a successful outcome, follow the following suggestions and steps. 

Determine target audience

Addressing your LOI to the appropriate person is crucial. Aim to direct it to a program officer, executive director, or board member. Thoroughly searching the foundation’s website can help you find the right contact information, even if it’s not listed on the staff page. Additionally, a Google News search using the foundation or contact person’s name might reveal contact details. Tools like RocketReach, which offers five free look-ups monthly, can be particularly useful for finding corporate contacts. Reviewing 990 forms can also provide board member and executive staff listings, although the information could be up to two years old.

Follow a clear, concise template

Again, Customizing the template to fit the specific requirements and preferences of the foundation is essential. Typically LOIs span about two pages and focus on two to three main concepts. Their purpose is to help funders determine your organization’s eligibility and how well your organization aligns with their funding priorities. Generally, an LOI template includes the following details:

• Introductory paragraph, briefly explaining your request, including the amount requested

• Organization background

• Project description, including the specific need your project addresses, how it aligns with the foundation's funding priorities, and outlining the goals, objectives, and intended outcomes of the project

• Budget information

• Any previous funding received from this donor

• Contact information and closing

• Enclosures (additional documents like a project budget, organizational brochure, or letters of support).

Best Practices

To make your LOI stand out, we recommend following these next practices:

• Ensure everything is simple and very clear

• Understand the funder, use the grantmaker’s language, follow their guidelines,

• Demonstrate need and impact by quantifying outputs

• Highlight innovation

• Demonstrating sustainability 

• Showcasing partnerships can also add credibility and strength to your proposal 

Every funder is different, so doing your homework is key. Clearly state your purpose and how it aligns with the foundation’s mission, keep your LOI short, and include a clear call to action with the next steps. 

Follow-up Steps

Once you’ve submitted your LOI, the real work begins! As foundations receive many LOIs, it is key to find ways to make yours stick out. Consistently following up will put your organization’s name on the funder’s radar. Two weeks after sending an LOI, follow-up to confirm receipt and express your gratitude for their consideration. Seek organic ways to connect with the foundation, such as through board, volunteer, or staff connections. Also be sure your website and social media are up to date, as funders will check them for more information. 

While cultivating a donor, maintain ongoing communication. In addition to answering and questions posed by donors, suggested follow-up actions include sending a relevant article, joining their newsletter and reaching out in response, sending quarterly program updates (links and videos are great options), and asking for feedback. Even if you are not immediately selected for funding, seeking feedback shows desire for growth. Finding ways to keep the funder “warm” will also place you in a good position for their next round of funding. 

Patience is crucial in the funder cultivation process. It can take two to six months to receive a response, with overall cultivation lasting up to 18 months. Smaller foundations run by volunteers may take longer to connect. 

Cultivating funding through LOIs is a strategic process that requires careful planning, research, and persistence. By following these guidelines and utilizing the available resources, you can increase your chances of securing the support your organization needs. Finally, if you’ve been told no, don’t take it personally; your organization may not be the right fit. Philanthropy has changed significantly over the last few years, with fewer foundations accepting unsolicited proposals. This just means we are finding new ways to be innovative in fundraising! AM Grants Consulting would be happy to assist you through this process. Please feel free to reach out for additional details and to discuss how we may support your organization.