How to express appreciation for an offer of science research funding What is an acceptable way to state that you are very happy to have been offered funding for a research proposal?

"I am honored to have this offer of funding for my research"
"I am grateful for this offer..."
etc

Neither of those sound right to me -- research funding is about having a sound and interesting proposal, so feeling honored or grateful doesn't ring true to me.  I've been wondering this for a while but I now have a research fellowship offer I need to decline (already took an earlier offer) so I want to make sure my declination does not sound unappreciative.

I know this issue may seem simple or pedestrian to some, but I'd like to know how most would reply to know I'm meeting the expectations of program officers, etc.

Thanks!
I received your offer for research funding. While I am honored and
  greatly appreciate your offer, I must regrettably decline as I have
  accepted another source of funding.
  
  Thank you for your kind consideration.
  
  [salutation, like Sincerely]
  
  [signed]


Keep it simple, short, polite, and professional. If you are in a country where overstatement is important, throw in a "very" and/or a "deeply" to conform to your norms.

You might want something more personal only if someone was literally offering to write you a personal check to pay for your research out of their own account. Otherwise accepting/declining an offer (and applying to multiple programs which all have the same deadlines) is the norm - so don't worry about it. 

Simple, short, polite, and professional.