As a nonprofit, we don’t measure success by revenue. We base success on the impact we’re making in the communities we exist to serve—our primary stakeholders. But how do we measure that and make strategic changes that will stay true to their needs, rather than simply assuming our programs are helping? 

By using a Theory of Change—a comprehensive illustration of the causal relationships linking what our organization does and how each of these lead to our end goal. Or, to put it in simpler terms, a Theory of Change is a document that lays out what success looks like for our organization and how it will be measured. It is a guide that reminds us who the primary stakeholders are. It is a theory for how we will create the change we hope to achieve.

Laid out below is Because International’s current Theory of Change. We wanted to give you full access so that you could understand how your support directly impacts everything we do and how it leads to our shared vision.

Our vision: Why we exist. The Theory of Change starts with the reason why we exist. Our vision of a world without poverty is what drives us, and everything else we do points back to this. 

Our activities: What we do. From there, we move to what we do each day—our activities—that should result in the targets, outcomes and impact we seek. 

2030 targets: How we know if we’re doing things well. Our 2030 targets are goals we’ve set as mile markers that will get us closer to the vision. They are quantifiable targets we can measure for results. 

Outcomes: How we know if our targets are working. If we’re successfully hitting the measurable targets, it should result in these outcomes—belief statements outlined by our team. 

Impacts: Why do these outcomes matter long-term? If our outcomes play out, we believe they will result in these long-term impacts in communities. 

Inputs: How supporters can help. To ensure everything takes place how we theorize it will, we need certain resources, such as a hardworking team, time from volunteers, donations, technology, etc.—the inputs. 

Things will change along the way—we may find that one activity isn’t moving the needle in the right direction—and that’s okay, as long as everything we do points to why we started Because International in the first place.

HOW IS A THEORY OF CHANGE DEVELOPED? 

A Theory of Change is developed by first naming what an organization hopes to change, followed by what long-term goals will help achieve that. Then, each goal is worked through to determine what conditions must be in place for it to occur. 

At Because International, this looked like identifying high-level questions and assumptions around our work, then testing them through research, conversations with stakeholders, and creating our Theory of Change. 

As an example of determining long-term goals and conditions that help achieve them, Because International’s vision is to alleviate poverty, and one of our long-term goals to achieve that is to create 25,000 jobs. To accomplish that goal, we need activities and inputs in place, such as volunteers to train and coach entrepreneurs in the Because Accelerator, who then will grow their businesses and create jobs in their communities. 

A Theory of Change is never finished—it is an ongoing document that is constantly challenged as it, in turn, challenges the organization. All parties, including the board of directors, should be given the opportunity to share thoughts on potential changes.

HOW IS A THEORY OF CHANGE TESTED?

A Theory of Change explains the actions we want to take and how they point to the overall vision, but it doesn’t provide a framework for gathering results—so how do you measure success? By using an additional document called an Impact Management Plan, which lays out a process for how the Theory of Change will be held accountable. 

It can be helpful to understand how the Theory of Change and Impact Management plan work together by visualizing how they fall into the steps of the scientific method. 

1. Theory of Change: Ask a question. 

• What problem do we want to solve? This is our vision. We exist to alleviate poverty.

• What can we do that will help the problem? Researching what’s been done, how we can do it better, etc.

3. Theory of Change: Establish your hypothesis. 

• Based on our research, our hypothesis (or theory) is that by doing x,y,z, we will help solve the problem identified. 

• Gather surveys about our impact, listen to stakeholders, etc. on every action we’re taking. 

5. Impact Management Plan: Analyze results, observe and draw conclusions.

• Based on the qualitative and quantitative research gathered to test the hypothesis, take a look at the Theory of Change and identify what steps are making positive change and what needs to be altered. Ensure that we are not basing decisions on assumptions, but facts. 

6. Theory of Change: Present the findings.

• Make changes to the Theory of Change, then start back at step three.

The Theory of Change and Impact Management Plan work hand-in-hand to hold our team accountable for staying true to our vision, ensuring we’re working for the primary stakeholder, and focusing on making our desired changes. It’s a constant cycle of putting things to the test, evaluating how they are working, and adapting. 

Whether you’re a donor, an advisor for the Because Accelerator, a member of our team, or have been cheering us on since 2007—thank you for joining us in this complex, ever-changing journey of trying to make a positive change in communities impacted by poverty. 

If you’d like to learn more about our Theory of Change, the work we do, or discuss how we can improve things, please reach out. As we mentioned above, all parties at Because International should have access and the opportunity to share thoughts on potential changes, and that includes our wonderful supporters like you!