Glossary
Grants

Letter of Intent

By: Alec Hollingsworth
Updated:  
June 16, 2025

DEFINITION:

A Letter of Intent is a formal summary expressing a nonprofit's intent to apply for a specific grant or funding opportunity.
A Letter of Intent (LOI) is a formal document that outlines a nonprofit organization's intention to apply for a grant or enter into a funding agreement with a grantmaker. It typically summarizes the project’s purpose, anticipated outcomes, and basic financial requirements. The LOI acts as a preliminary proposal, allowing the funder to quickly assess whether the organization’s project aligns with their funding priorities before inviting a full application. LOIs are often used to streamline the grant application process for both nonprofits and grantmakers, reducing time spent on lengthy proposals that may not meet eligibility requirements.

Key Takeaways

  • Introduces your project to potential funders
  • Saves time by prequalifying grant applications
  • Summarizes key project details and objectives
  • Often required before submitting a full proposal
  • Helps establish initial communication with funders

Why It Matters

LOIs help nonprofits save time by targeting suitable funders and clarifying eligibility early in the grant process.

Real World Example

Imagine a youth arts nonprofit seeking funding for a new after-school program. Before investing time in a full grant proposal, the organization submits a Letter of Intent to a local arts foundation. The LOI summarizes the program’s goals, expected outcomes, and estimated funding needs. After reviewing the LOI, the foundation invites the nonprofit to submit a complete grant application, indicating their interest and increasing the nonprofit’s chances of success. This process saves both parties time and ensures alignment before moving forward.

How Aplos Helps

Aplos helps nonprofits track the progress of grant applications, including managing documents such as Letters of Intent. By integrating LOI tracking into your grant management workflow, Aplos ensures that important deadlines and communications are organized, supporting a streamlined grant-seeking process.
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Frequently Asked Questions

What is included in a Letter of Intent?

A Letter of Intent typically includes a summary of the project, objectives, anticipated outcomes, funding requested, and organizational background.

Is a Letter of Intent binding?

No, a Letter of Intent is generally not legally binding. It expresses interest and intent, but does not commit either party to funding or implementation.

When should I submit a Letter of Intent?

You should submit an LOI when a grantmaker requests it as part of their application process, usually before submitting a full proposal.

How does Aplos help with managing LOIs?

Aplos allows you to track LOIs, deadlines, and communications, making it easier to manage the grant application process efficiently.

Related Terms

Permanently Restricted Net Assets
Deferred Revenue
State Charitable Registration
Mission Trip Fund
501(c)(3)
Fiscal Sponsorship

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