A letter of intent (or letter of inquiry) is generally a two- or three-page summary (though some funders may request a specific number of pages) submitted when the funder wishes to see a brief description of the project before deciding whether to ask for a longer, more detailed proposal. This document must focus on how the proposed project fits the priorities of the funder. It should also clearly describe the need and outline the plan to meet it.

A letter proposal is the type most often requested by corporations. It is typically a three- or four-page description of the project plan, the organization requesting the funds, and the actual request. The letter proposal and the letter of intent are often confused by grantseekers. In the letter proposal you are actually requesting funds. In the letter of intent you are only introducing your idea to the funder in order to determine whether the funder has an interest in receiving a more detailed proposal.

The long proposal (or full proposal), a format that includes a cover letter and a proposal summary, is the type most often requested by foundations. Corporations should not receive this format unless they specifically request it. Long proposals range from five to twenty-five pages, with most funders being interested in receiving about seven to ten pages, plus attachments. In the longer proposal, the grantseeker has an opportunity to give many details about the project and its importance to the community. When using this longer format, you should make sure that the funding request—the actual dollar amount—is not hidden. It should appear in the cover letter and in the summary as well as in the body of the proposal.

In some instances, funders—mostly the larger grantmaking institutions—are now requiring grantseekers to fill out applications in the form of online templates. (See the Reality Check box on page 25 in Step Two for more information about this process.)