A Letter of Intent (LOI) in grant funding is a short document used by some funders before the full application stage. But the acronym is dangerous because different funders use “LOI” differently. Some mean Letter of Intent; others mean Letter of Inquiry.
That means the first rule is not “use an LOI template.” The first rule is read the donor’s own instructions and confirm what the document is supposed to do.
Letter of Intent vs Letter of Inquiry
A Letter of Inquiry is commonly a screening document that helps a funder decide whether to invite a full proposal. A Letter of Intent may instead be an administrative notice that tells a funder you plan to apply, helps estimate review workload, or confirms participation in a process.
This distinction is not theoretical. The U.S. National Institutes of Health previously used Letters of Intent for some opportunities, but in December 2025 NIH announced that it would no longer request or accept them as part of its application process. That is a good reminder that application terminology and procedures can change.
What should a grant Letter of Intent include?
If the donor asks for a substantive LOI rather than a simple administrative notice, common elements may include:
- Project title.
- Applicant organization.
- Project purpose.
- Target population and geography.
- High-level approach.
- Expected results.
- Funding amount or indicative budget if requested.
- Key partners where relevant.
When an LOI should be very short
Some funders only want an administrative notification containing basic applicant and project information. In those cases, adding a mini proposal can be counterproductive. Follow the exact requested fields.
Common LOI mistakes
- Assuming Letter of Intent and Letter of Inquiry are interchangeable.
- Using a generic template without reading the call.
- Submitting an LOI when the donor no longer accepts one.
- Introducing project numbers that later contradict the full proposal.
- Overloading a short first-stage document with full-proposal detail.
If the donor is using an LOI as a screening stage, confirm fit first with the Should We Apply? Grant Checker.
Free Concept Note Template
If the funder’s LOI functions as a substantive first-stage screening document, this concept-note structure can help you organize the core project case. Always follow the funder’s own LOI format first.
Frequently Asked Questions
Is a Letter of Intent the same as a Letter of Inquiry?
No. Some funders use the terms loosely, but they can serve different purposes. Use the donor’s definition.
Is an LOI legally binding?
Often not, but you should never assume that without checking the funder’s rules.
Does every grant require an LOI?
No. Many funders do not use one at all.
Should an LOI include a budget?
Only if the donor requests a funding amount, project cost or indicative budget.
Can I reuse an old LOI?
Reuse verified project facts, but rebuild the document around the current donor’s purpose and instructions.
Conclusion
An LOI is not one universal document. Before writing, determine whether the donor wants a screening letter, an administrative notice or something else entirely. The donor’s current instructions matter more than any generic template.