Business writing varies from the conversational style often found in email messages to the more formal, legalistic style found in contracts. A style between these two extremes is appropriate for the majority of memos, emails, and letters. Writing that is too formal can alienate readers, and an attempt to be overly casual may come across as insincere or unprofessional. In business writing, as in all writing, you must know your audience.
Nobody liked your project idea, so we are not going to give you any funding. The first version is a weaker statement, emphasizing facts not directly relevant to its point. The second version provides the information in a simple and direct manner. But you don’t need to be an expert on style to know that the first phrasing is diplomatic and respectful (even though it’s less concise) as compared with the second version, which is unnecessarily harsh and likely to provoke a negative reaction.