Theory of change

A theory of change is the story of how your work creates change, set out clearly enough that a funder — or a new trustee — can follow it. It connects your activities to the difference you exist to make, and shows the steps in between rather than leaving them assumed.

A theory of change maps the causal links from activities, through outputs and outcomes, to longer-term impact, making the assumptions behind each step explicit. (Source: sector-standard definition — New Philanthropy Capital (NPC) / NCVO, accessed 9 July 2026.) It is usually shown as a simple diagram with a short narrative, and doubles as a plan and a basis for measurement.

Build yours by working backwards from the change you want, and keep it to a page. See a worked example on the theory of change example page, use the template, and read how it feeds measurement in the Impact Measurement Handbook.