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.
A Note About Email Business Letters. It might be tempting to leave out the closing when you're communicating by email, but don't give in to that temptation. Although no_closing emails are perfectly fine for everyday communication with your friends and teammates, they'll seem brusque – or worse, unprofessional – to people you don't know as well. You should also use a business letter closing when you're corresponding with someone professionally about an important issue, whether it's a new project or a job opportunity.