Declining, Want to do so nicely...

[armchairette]

I know this is a great problem to have, but if you have any advice, please share:

 

I have just received an A-mazing funding offer from a program and will definitely be accepting it.  This means I will have to decline a (not as) generous offer from a program that has been nothing but pleasant.  This program made it very clear that they really want me and that I'm the only applicant they are considering.  I visited them and they were great, just not the perfect fit.  They are just so nice--but, I simply cannot turn down the other offer.  

 

How should I word the declining email?  I'm afraid they might try to negotiate more money to sway me, but I'm really sold on the other program.  I'm also worried about offending a group of really nice people.

[Vene]

I'd just say something about how I carefully considered my options and while I appreciate the offer I'll be heading elsewhere for graduate studies.

Ultimately, it's the applicants who have more to lose from a regection than the universities.

[armchairette]

Thanks!