There are different proposal types grant-seekers can use to solicit funds. The type of proposal you will use depends on who you are communicating with. In general, there are four types of proposals.

• Letter of intent
• Letter proposal
• Full proposal
• Online application

We will look at each below.

Letter of Intent

A letter of intent is a 2-3 page summary of your project. This letter will contain information describing your organization, the gist of the project, and how the project fits the priorities of the potential funder.

There are several benefits of a letter of intent. First, it saves time for both the grant seeker and the funder. It is much easier to write a 2-3 page summary and to read such a summary than to go through the entire proposal process. Second, if the funder likes what they read, they can request a full proposal.

Letter Proposal

A letter proposal is 3-4 pages and describes the project and organization seeking funds. This type of proposal is often requested by corporations. On the surface, it appears there is no difference between a letter of intent and a letter proposal. However, there is one major difference

A letter of proposal will generally always include a request for a specific amount of money. A letter of intent will not include a dollar request. The letter of intent is a letter that communicates an intention to send a proposal while a letter proposal is already a proposal.

Full Proposal

A full proposal is what many think of when they think of a grant proposal. A full proposal is somewhere between 5-25 pages and includes a cover letter, proposal summary, project plan, evaluation plan, etc. This type of document is often requested by foundations from the beginning or perhaps after a letter of intent has been received.

A full proposal is going to have a strong explanation of all of the costs involved and the funding request. There will also be details in terms of objectives and activities that will be performed to achieve the objectives. Since so much is involved in the preparation of this document, it takes a great deal of time and can be discouraging if the project is rejected.

Application

Perhaps the most common way to solicit funds from grantors is the online application. The online application involves completing some sort of online template in which all the information the grantor wants is inputted. Such an approach is a departure from the personal, relationship-building style of grant-seeking of the past.

It seems that everybody uses online applications now but they are especially common among large grant-making institutions who focus on funded projects. It’s easy for this to become an impersonal experience. However, the goal is to help people who are in need through obtaining needed funding.

Conclusion

The proposal is a critical part of obtaining funding. It provides critical information about the project while also formally communicating a need to a potential financial supporter. However, it is important to consider the preferred way that a grantmaker wants to be contacted, which is why these various types of proposals were shared.