Funders can also use a theory of change to help plan, review and evaluate their own work. This article by NPC tells you why they should.

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It’s good to see more funders encouraging the charities they work with to develop theories of change — to help them select the most promising interventions to fund, and ensure the grantees they do support have coherent plans for achieving and measuring impact.

But its potential doesn’t stop there, says Dawn Plimmer, writing for NPC. Funders can also use theory of change to help plan, review and evaluate their own work. Here’s why:

1)    Strategy

By carefully thinking through each step required to achieve your goal (rather than specific activities you assume you should fund), theory of change will help you challenge assumptions in your thinking and consider the best way to use your resources.

2)    Communication

Theory of change is a useful communication tool—it can provide a clear narrative for the rationale behind how and what you fund links to your goals.

3)    Learning & evaluation

It can help you prioritise what to measure. By measuring what’s really important to your mission and nothing more, you can ensure that the information you ask for from grantees is meaningful.

This is an excerpt from the full article, which can be found here.


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New Philanthropy Capital

New Philanthropy Capital

NPC is a charity think tank and consultancy that occupies a unique position at the nexus between charities and funders, helping them achieve the greatest impact. This understanding of both sides of the funding equation is reflected in the variety of skills and knowledge of our people, and their backgrounds in charities and the public and private sector.

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