Why are funders so interested in the “Theory of Change”?
Because funders have become very concerned about community buy-in and about accountability. Those are two of the reasons. By asking initiatives they fund to have theories of change they are asking them to show and justify how exactly they plan to meet their goals, and to agree on what will be considered success. Also, the developing a theory usually implies getting numerous stakeholders to the table, and funders have learned that initiatives that the community or key stakeholders do not support are not likely to produce outcomes. And many funders are interested in building the capacity of the community as a goal in addition to any other desired outcomes.
