One challenging part of the hiring process is informing an applicant that he or she will not be getting the job. The tool you can download below intends to provide you with examples of communication with job applicants. You may adapt it to match your business needs. The rejection letter should honestly inform the applicant about the prospects for future consideration for employment. If an applicant was just edged out by someone marginally more qualified, and you plan to keep the applicant in mind if you need to expand again, say so.
Also included in the attached file is a letter that may be used to acknowledge unsolicited applications.