Examine the following sentence:
In my last year in high school, my adviser urged that I apply to several colleges.
This complex sentence is built out of two sentences, one of them (B) embedded in the other (A):
A. In my last year in high school, my adviser urged B.
B. I (should) apply to several colleges.
When these are combined as in the original sentence, sentence B becomes a noun clause introduced by that and becomes the object of the verb urged in sentence A. Now look at the following sentence:
It made a big difference that she wrote a strong letter of recommendation.
Here the two component sentences are C and D:
C. D made a big difference.
D. She wrote a strong letter of recommendation.
In this case, the noun clause formed from sentence D functions as the subject of sentence C so that the combination reads as follows:
That she wrote a strong letter of recommendation made a big difference.
This sentence is gramatically acceptable but not typical. When a long noun clause is the subject, it is usually moved to the end of the sentence. The result is It made a big difference that she wrote a strong letter of recommendation, which inserts the dummy subject It as the subject.