Lay out your papers and decide which design you would like to use for each letter. Print out the template.
Cut the template into separate letters. Use the stencil tape to attach the templates to the scrapbook paper. Cut out with scissors, using a craft knife for detail areas.
Paint the canvas using a few coats of acrylic paint. Let dry between coats, then let dry completely.
Lay the letters out on top of your canvas, making sure the spacing is where you like it. Honestly, I just eyeballed.
Pick up a letter. Add a medium layer of Mod Podge to the canvas in the area where you are going to apply the letter. You're going to coat the whole canvas so just put it all over the area.
Smooth the letter down into a Mod Podge, using a brayer to help you smooth, if necessary. Brush any excess Mod Podge down smooth and let dry.
Repeat this process with the remaining letters, then let dry.
Seal the entire canvas with a coat of Mod Podge. Let dry and repeat. Let dry completely before hanging.
Notes
I bought my canvases in a bulk pack of six and had the paper, Mod Podge, and acrylic paint all on hand.