The Purpose of a Rejection Letter

Professional Courtesy: It's considered good etiquette to notify individuals when they have not been selected, rather than leaving them in the dark.
Provides Closure: It allows the recipient to move forward, knowing that a particular opportunity is no longer available.
Feedback: While not all rejection letters offer feedback, some might provide reasons or constructive critiques, especially if the relationship between the parties is ongoing or if the applicant came close to being accepted.

Key Components of a Rejection Letter

Recipient's Information: The name and address of the person or organization being rejected.
Salutation: A polite greeting, such as "Dear [Name],"
Thank You: An acknowledgment and appreciation for the recipient's effort, interest, or time spent during the application or bidding process.
Notification: A clear statement indicating the rejection. For example, "We regret to inform you that we have chosen another candidate for the position."
Reason (optional): Some organizations choose to provide a brief reason for the rejection, but this is not always the case. It's essential to be truthful but also tactful if giving a reason.
Feedback (optional): Constructive feedback can be beneficial, especially in contexts like job applications or project proposals. However, it's important to be careful and sensitive when offering feedback to ensure it's taken in the right spirit.
Future Opportunities: If relevant, mention potential future opportunities or encourage the individual to apply or bid again in the future.
Closing: A polite sign-off, such as "Best regards" or "Sincerely," followed by the sender's name, title, and organization.
Contact Information: It's helpful to provide a point of contact in case the recipient has further questions or requires clarification.

When writing a rejection letter, it's crucial to maintain a tone of professionalism, courtesy, and empathy. It's also a good practice to send out rejection letters in a timely manner, as prolonged waiting periods can create unnecessary stress for applicants or bidders.