[Your letterhead, if desired; if not, your return address]

[Date of letter-month, day, and year]

[Recipient's first and last names]
[Company name]
[Street or P.O. box address]
[City, State ZIP code]

Dear [recipient's name]:

Thank you for notifying me that my company has been awarded federal grant #1234 for the next year. These funds will help quite significantly with all of our many ongoing research projects. In compliance with your requirements, I will complete regular documentation and updates on projects.

Thank you again for your highly valuable support of my research.

Sincerely,

[Signature]

[Sender's first and last names]