What Is a Theory of Change?
A Theory of Change (ToC) is a strategic framework that helps organizations articulate how their work leads to meaningful outcomes. As defined by Grantmakers for Effective Organizations, it is a “systematic assessment of what needs to happen in order for a desired outcome to occur.” It connects an organization’s activities to its larger vision, explaining both the “how” and the “why” behind expected results.
Although most grant applications do not explicitly ask you to state your Theory of Change by name, they will almost always ask questions that invite you to communicate it. Knowing your Theory of Change — and being able to weave it through your proposal — makes your application more coherent, more compelling, and easier for reviewers to follow.
The Two Types of Theory of Change Models
Basic (Linear) Theory of Change A basic ToC is a straightforward “do-get” model. For example: “We teach people how to improve their nutrition when dining out, so that they improve their health.” It focuses on one key strategy leading to a single outcome — simple, clear, and easy for reviewers to follow.
Multi-Strategy Theory of Change A multi-strategy ToC layers several interconnected strategies to generate broader outcomes. For example: “We teach people how to exercise without a gym, improve their nutrition, and manage their stress, so that participants improve their health, so that they experience fewer health-related concerns, so that they spend less time and money seeking medical care.” The layered “so that” structure shows how multiple actions contribute to long-term, sustainable impact.
How to Build a Theory of Change in Three Steps
- Identify your desired results — What change do you ultimately want to see? (e.g., improved community health)
- Name the strategies that will produce those results — What will you do? (e.g., exercise education, nutrition coaching, stress management)
- Define your assumptions — Why will these strategies work? What evidence or logic supports the connection? (e.g., exercise and nutrition contribute to better health outcomes)
For a simplified starting point: begin with your key strategy and keep adding “so that” until you reach your ultimate impact goal.
A Theory of Change works closely alongside a logic model — both help you articulate program design clearly for funders. Download our free Logic Model Guidebook to understand how to build a logic model that complements your ToC.
How Grantmakers Use Theory of Change in Their Review
Even when a grantmaker does not use the phrase “Theory of Change,” the proposal questions they ask are often designed to surface it. Questions that help communicate your ToC include:
- What need are you addressing, or what problem are you solving?
- How do you know your solution will work?
- What evidence-based practices are you using?
- What will happen as a result of your work?
Answering these questions with consistency and clarity — weaving the same logic throughout your needs statement, program design, and evaluation plan — is how your Theory of Change becomes a “Red Thread” that holds your entire proposal together.
Free Resources to Strengthen Your Proposal’s Program Design
- Logic Model Guidebook — step-by-step guide to building a logic model with examples for each section
- SMART Objectives Toolkit — connect your Theory of Change to measurable objectives reviewers can evaluate
- Guide to Incorporating Your Red Thread — learn how to weave a central narrative through your entire grant application
This blog has been updated on 3/17/2026