Letter of Commitment or Letter of Support? Demonstrate Your Project’s Value and Impact

     Federal funding opportunities generally require or recommend that applicants attach letters from third-party stakeholders with application submissions. The type, number, and source of letters vary from program to program, but standard requirements include letters of commitment, letters of support, and agreements.

    However, funding opportunities do not always clearly distinguish between a letter of "support" and a letter of "commitment." Some programs offer flexibility, allowing the submission of one or both types. So, how can you determine which type of letter is appropriate for your application? Understanding each letter's distinctive qualities and advantages is essential to make your project stand out.  

 

Letter of Support vs. Letter of Commitment

 

Letters of support show that a stakeholder or community is positively receptive toward your project and emphasizes the benefits your project will deliver.  

Letters of commitment highlight collaboration with the community or project implementation partners and strategically demonstrates the project’s viability and strength. 

 

Crafting a Strong Letter of Support 

     A letter of support is a letter from a relevant third-party stakeholder endorsing an applicant’s project. The letter should describe the relationship between the third-party organization and the applicant and the benefits of implementing the project. A letter of support does not necessarily indicate that the stakeholder is committed to participating in or contributing resources to the project’s success. It allows stakeholders to advocate for a project by highlighting its impact, why it is necessary, and the broader benefits an industry or a community will experience because of the project. 

     A letter of support also communicates active local approval for a company’s project plan rather than opposition. They can be received from workforce or community organization partners, customers, suppliers, local or state government representatives, and others.  

 

Crafting a Strong Letter of Commitment 

     A strong letter of commitment can elevate your grant application during the review process, moving your project beyond an idea to a viable, achievable plan. A letter of commitment is a letter from a third-party stakeholder that identifies the goal of the partnership between the third party and applicant and the intended outcome or benefit. Letters can come from any organization or group collaborating with the applicant, such as workforce or community organization partners, technology, research, or project implementation partners, customers, suppliers, and others.  

     Commitment letters may highlight broad project benefits like letters of support. However, they also show that an applicant has garnered resources and cooperation to help ensure a project’s success. The letter must include measurable, actionable commitments agreed to by the applicant and third party (e.g. establishing an internship, scholarship, or apprenticeship program; implementing certain training programs; hosting education workshops; entering into a binding agreement, etc.). A letter of commitment may also detail resources the third party is committing to the project, if applicable, such as financial investment, technology, workspace, research, or personnel. 

 

Acquiring Letters of Commitment 

Many applicants struggle to secure strong letters of commitment. There are two primary reasons: 

1. Time:

     Procuring a signed commitment letter requires a longer timeframe for conversations, negotiations, and planning. That can be difficult to achieve and confusing to navigate on a tight timeline. If your company is planning to pursue grant funding, it’s important to begin planning the key elements of your project early to ensure the company is positioned to successfully submit a grant when an opportunity opens. This includes identifying and engaging partners.

     Put together a list of partners you intend to engage and how you will ask them to be involved. Reach out to potential partners as soon as you have an opportunity. It’s never too early to start the conversation. Don’t forget to prioritize community and workforce organizations as part of a strong workforce development and community benefits plan.

2. Risk: 

     Many partners, especially customers and suppliers, are not comfortable signing letters that detail specific, preliminary commitments before a project has even commenced. Unknown variables, including financial variables around whether grant funding will be received for the project or not, make it difficult for companies to determine whether they can reasonably make and uphold firm commitments.  

     Remember that letters of commitment and the commitments disclosed within them are conditional. The commitments are only applicable if the grant is awarded and if the project proceeds as agreed between the parties. You can add conditional language directly to the letter. Ask the partner what language, changes, or stipulations would make them more comfortable in signing a letter. 

  

Summary and Conclusion 

Letters of support and commitment are both beneficial in the appropriate framework. When designing your grant proposal and engaging potential partners, be mindful of the end goal you hope to achieve by submitting letters. If an application calls explicitly for a letter of commitment or if you wish to showcase collaboration, be sure to incorporate the relevant details, actions, and goals of your partnership in the letter.