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.
When writing an application letter, remember that you probably have competition. Your audience is a professional who screens and hires job applicants—someone who may look through dozens or even hundreds of other applications on the day she receives yours. The immediate objective of your application letter and accompanying resume is to attract this person’s attention. Your ultimate goal is to obtain an interview. As you write your application letter, be sure you complete three tasks: catch the reader’s attention favorably, convince the reader that you are a qualified candidate for the job, and request an interview.