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.
For uploaded or mailed cover letters, you do not need to include as much information as you would in an email message, because the heading of your cover letter includes your contact information. For a paper cover letter, use a formal business_style letter format which includes a heading, salutation, the body of the letter, closing, and your signature. Review these guidelines for what to include in your letter.