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How do you write a formal letter of proposal to a funding agency or donor?

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A formal letter of proposal is a document that outlines your project idea, objectives, budget, and expected outcomes to a potential funding agency or donor. It is a way of persuading them to support your cause and demonstrate your credibility and competence. Writing a formal letter of proposal can be challenging, but it can also be rewarding if you follow some basic steps and guidelines. Here are some tips on how to write a formal letter of proposal to a funding agency or donor.

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Phoebe Whitlock

Award winning Legal Counsel/Enable Role Model List 2024/Chair of the Board (Codebar)/Director of IPAN/Agile Management…
Sheriza Kamal

Transit Retail & Event Activations | Marketing | Enriching Commuting Experience

1 Research the agency or donor

Before you start writing your letter, you need to do some research on the agency or donor you are targeting. Find out their mission, vision, values, priorities, criteria, and deadlines. You also need to identify the contact person and their title and address. This will help you tailor your letter to their specific interests and expectations, and show that you have done your homework and respect their time and resources.

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Sheriza Kamal

Transit Retail & Event Activations | Marketing | Enriching Commuting Experience
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Most agencies and donors prefer campaigns or projects that align with their values. Understanding their background before reaching out is crucial. With so many applications to review, a well-tailored proposal that resonates with their mission can significantly increase your chances of being considered.

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2 Use a formal letter format and tone

A formal letter of proposal should follow a standard business letter format and tone. It should have a clear and concise layout, with proper salutation, introduction, body, conclusion, and signature. It should also use a formal and polite language, avoiding slang, jargon, or abbreviations. You should use a professional font, such as Times New Roman or Arial, and a standard size, such as 12-point. You should also proofread and edit your letter for any spelling, grammar, or punctuation errors.

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3 Write a catchy introduction

The introduction of your letter is your first chance to capture the attention and interest of the agency or donor. It should briefly introduce yourself and your organization, state the purpose and main idea of your proposal, and explain why you are writing to them and how you learned about them. You should also include a hook or a statement that highlights the relevance, urgency, or uniqueness of your project. For example, you could use a statistic, a quote, a question, or a personal story that relates to your project.

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4 Write a clear and detailed body

The body of your letter should contain logical paragraphs that include a topic sentence and a transition word. You should explain the problem or need your project aims to solve, the goals and objectives it intends to achieve, the methods and activities it will use, the timeline and milestones it will follow, the budget and resources it will require, the expected outcomes and impacts it will have, and the evaluation and monitoring plan it will adopt. To back up your claims and show credibility, use facts, figures, examples, testimonials, or citations. Anticipate any questions or concerns that the agency or donor might have to further prove your proposal's feasibility.

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Sheriza Kamal

Transit Retail & Event Activations | Marketing | Enriching Commuting Experience
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In my experience reviewing proposals, I've noticed that one of the most common mistakes is the lack of detail in the execution plan. Proposals often emphasize the end goal but overlook the critical steps required to achieve it. For instance, when requesting funds, it's rare to see a comprehensive breakdown of how those funds will be utilized to reach the desired outcome. A successful proposal should not only outline a clear and actionable plan but also demonstrate how the project will positively impact the donor, aligning with their values and objectives. Providing this level of detail not only strengthens the proposal but also builds confidence in its potential for success.

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5 Write a compelling conclusion

The conclusion of your letter is your last chance to persuade the agency or donor to support your proposal. It should summarize the main points and benefits of your project, restate your request for funding or collaboration, and express your gratitude and appreciation for their consideration. You should also include a call to action or a suggestion for the next steps, such as inviting them to contact you for more details, sending them your full proposal or portfolio, or requesting a meeting or a site visit.

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6 Attach relevant documents

Depending on the requirements and preferences of the agency or donor, you may need to attach additional documents to your letter. This could include a cover page with your name, title, organization, contact information, and proposal summary; a table of contents with page numbers and headings; a full proposal with more details and appendices; a budget spreadsheet with itemized costs and sources of income; a work plan or a Gantt chart with tasks and deadlines; a resume or curriculum vitae with your qualifications and experience; a letter of support or endorsement from a partner or stakeholder; a certificate of registration or incorporation of your organization; and/or a sample of your previous work or portfolio of your achievements. It is essential to label and number these documents clearly, referring to them in your letter. Moreover, make sure that they are consistent, accurate, and updated.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Phoebe Whitlock

Award winning Legal Counsel/Enable Role Model List 2024/Chair of the Board (Codebar)/Director of IPAN/Agile Management team (SCL)/UN Women UK Participant (CSW68)/Podcast Host/Expertise in cyber security, AI & IP
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With any kind of written proposal always check, check and check again! There is never too many eyes to have on a document checking for spelling, grammar and general inconsistencies.

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Letter Writing

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How do you write a formal letter of proposal to a funding agency or donor?

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1 Research the agency or donor

2 Use a formal letter format and tone

3 Write a catchy introduction

4 Write a clear and detailed body

5 Write a compelling conclusion

6 Attach relevant documents

7 Here’s what else to consider

Letter Writing

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