How to Use a Letter of Inquiry to Get Mental Health Funding

If you work in the mental health space—whether you’re a nonprofit, clinician-led startup, or grassroots community program—you’ve probably heard that “grants are competitive.” But what if I told you there’s a shortcut into the funder’s inbox?

That shortcut is the Letter of Inquiry (LOI)—a 1–2 page document that’s your golden ticket to getting noticed.

A well-written LOI can unlock six- and seven-figure funding, especially for mental health programs serving vulnerable or underserved populations.

This isn’t fluff. LOIs are often required before you’re even allowed to apply. They’re your opportunity to show a funder, “Hey, we’re aligned. Let’s talk.”

In this guide, I’ll show you exactly how to craft an LOI that gets read, respected, and responded to—plus give you sample language, insider tips, and a step-by-step roadmap you can implement today.

What Is a Letter of Inquiry (LOI)?

A Letter of Inquiry (also called a Letter of Interest or Letter of Intent) is a concise pitch—usually 1–2 pages—that introduces your organization and proposes a project to a potential funder.

It’s not the full proposal. It’s the “first date.” You’re not giving your life story—you’re showing them enough value and alignment to want a second conversation.

Most private foundations (and many government initiatives) use the LOI as a screening tool. If they like what they see, they’ll invite a full application.

Why Use an LOI?

• Saves time (yours and theirs)
• Opens doors to restricted grantmakers
• Gets you early feedback
• Shows professionalism and planning

Why LOIs Work for Mental Health Programs

Mental health is deeply personal—and funders know this. They also know it’s urgent, complex, and underfunded. That’s why a clear, values-aligned LOI can stand out.

Use your LOI to demonstrate:

• Urgency: “We’re the only provider of free trauma therapy for teens in [area].”
• Innovation: “We blend culturally rooted peer support with licensed counseling.”
• Equity: “80% of our clients are Black women navigating PTSD and poverty.”
• Impact: “We reduced hospitalization rates by 35% in 12 months.”

You don’t need 50 pages of data. You need two pages of clarity and connection.

The 7 Must-Have Elements of a Winning LOI

Use these elements like a checklist:

1. Intro & Mission
   Start with your organization’s name, mission, and a short sentence of credibility:
   “Founded in 2017, MindWell provides trauma-informed mental health care to underserved teens in [location].”
2. The Problem (Needs Statement)
   Use local, specific data. Funders want to know WHY this matters.
   “In our county, 1 in 4 youth report symptoms of anxiety, yet only 12% have access to therapy.”
3. Your Program or Solution
   Highlight your approach and why it works.
   “Our Youth Resilience Project trains peer leaders to provide group support, with licensed therapists guiding each session.”
4. Outcomes & Impact
   Think measurable and meaningful.
   “We aim to serve 200 youth and decrease crisis calls by 25% within one year.”
5. Funder Alignment
   Show you did your research.
   “This aligns with the [Foundation Name]’s priority to improve youth mental health in underserved areas.”
6. Funding Request
   Keep it simple:
   “We are requesting $50,000 to launch Phase 2 of our program, expanding to three schools.”
7. Closing & Next Steps
   Thank them and invite further contact.
   “Thank you for considering our request. We would be honored to submit a full proposal.”

Sample LOI Paragraphs You Can Customize

Here’s a plug-and-play sample:

Dear [Funder Name],

[Your Organization Name] is a nonprofit dedicated to expanding mental health access for [target population]. We are seeking a grant of $[amount] to support our [program name], which delivers [brief description, such as culturally responsive counseling, mobile crisis response, or trauma-informed care].

In our county, mental health needs have surged—yet access remains limited for [specific group]. Our approach combines [strategy, like peer support + clinical care], with measurable outcomes including reduced ER visits, school referrals, and increased therapy engagement.

This request aligns with your commitment to [funder’s focus area]. We welcome the opportunity to submit a full proposal and explore partnership.

With gratitude,
[Name, Title, Contact Info]

How to Find Funders Who Accept LOIs

Use free or low-cost tools like:

• Foundation Directory Online (Candid)
• GrantStation
• Instrumentl – 14-day free trial
• Your state nonprofit association or local United Way
• Foundation websites (check “How to Apply” sections)

Best Practices to Make Your LOI Stand Out

✅ Keep It Short – 1–2 pages max
✅ Use Local Data – Show community context
✅ Mirror Their Language – Read the foundation’s mission and mimic tone
✅ Lead With Alignment – Mention shared values or focus areas early
✅ Tell a Mini Story – One paragraph with a client example adds heart
✅ Be Clear About the Ask – Don’t make them hunt for it
✅ Include Contact Info – Make it easy to follow up

Common Mistakes That Sink Mental Health LOIs

Too vague: “We help people with mental health needs.”
✅ Instead: “We provide free therapy to formerly incarcerated women reentering society.”

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No outcomes: “We aim to make a difference.
✅ Instead: “We’ll reduce ER visits for 100 high-risk teens by 30%.”

Ignoring guidelines: If the funder wants email only, don’t upload a PDF.

Too much detail: Don’t send a mini-novel. Just enough to say: “We’re legit. We’re aligned. Let’s talk.”

What Happens After You Submit the LOI?

Three possible outcomes:

1. You’re Invited to submit a full proposal (Congratulations!)
2. You’re Declined (Follow up and thank them anyway)
3. You Hear Nothing (Send a gentle follow-up in 3 weeks)

Pro Tip: Always track your submissions in a simple spreadsheet (date sent, contact name, funder name, status). You’ll be amazed how many opportunities come back around.

Next Steps: Use LOIs to Grow Your Mental Health Program’s Funding

Here’s your action plan:

1. Pick 3–5 funders who accept LOIs
2. Draft a general LOI using this guide
3. Customize for each funder
4. Send and follow up
5. Track everything (you’ll thank yourself later)

Need Help Writing Yours?
Book a 1:1 LOI Review Session or

Join Our Grant Writing Academy Membership for ongoing templates, coaching, and funding strategy.

Final Word

Your work in mental health matters. And the funding is out there.

A strong LOI is often the first—and most important—step toward long-term partnership with funders who want to support your mission.

So don’t wait for the perfect moment.

Take the next faithful step.

One LOI can change everything.