X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT v NPC’S THEORY OF CHANGE—VERSION ONE London, 2014 NPC - title of the document (can be changed under view/header and footer. Add date here if needed.1

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT ABOUT NPC (NEW PHILANTHROPY CAPITAL) NPC is a charity that works as a consultancy and think tank, dedicated to helping charities and funders achieve the greatest impact so the lives of the people they serve are improved. We are driven by the values and mission of the charity sector, to which we bring the rigour, clarity and analysis needed to better achieve the outcomes we all seek. We occupy a unique position at the nexus between charities and funders and this understanding of both sides of the funding equation means we can help both use their resources more effectively. Find out more about our work at 2

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT ABOUT THEORY OF CHANGE We place a theory of change at the heart of our approach as we believe it is an excellent basis for both strategy development and impact measurement.theory of change We are committed to practising what we preach and so are sharing this version of our theory of change—it helps clarify both what changes we want achieve and how we intend to make these happen. We are using this theory of change to identify outcomes to measure our progress against and to ensure all our activities contribute towards achieving our desired impact. We aim to review our theory of change regularly as we build evidence about what works and what does not. 3 These slides are animated, so view as a slideshow and keep clicking through for the content to appear.

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT THE ULTIMATE GOAL Our vision is for a charity sector that makes the most of its resources, achieves the maximum impact possible and so improves more lives. 4 The lives of people served by charities improve

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT WHAT HAS TO HAPPEN IN ORDER FOR THIS TO BE ACHIEVED? We believe for the charity sector to transform and be as effective as it can we need to inspire new thinking and prioritise impact. Charities need to increase their impact, both individually and collectively. Funders need to support effective charities so they can continue and grow. 5 The lives of people served by charities improve Effective charities are funded / grow Therefore our activities need to create change at two levels: 1.Change for individual or groups of charities and funders 2.Change across the sector Charities increase their impact

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT 6 1) CHANGE FOR CHARITIES AND FUNDERS The lives of people served by charities improve Charities increase their impact Charities and funders are aware of good practices Effective charities are funded / grow Charities & funders are inspired to measure and increase their effectiveness Charities demonstrate their impact to funders Charities & funders understand their effectiveness Charities & funders access skills & knowledge to increase effectiveness Funders target and support effective charities This shows how we create change for both individual charities and funders and how these outcomes link together.

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT 7 2) CHANGE ACROSS THE SECTOR The lives of people served by charities improve Charities increase their impact Barriers / opportunities to increasing impact are known and understood Effective charities are funded / grow Structures & processes support effectiveness of funders and charities Barriers / opportunities to increasing impact are addressed by sector Charities and funders are aware of good practices* *This outcome is influenced both by our work with individual organisations and across the sector.

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT 8 NPC’S THEORY OF CHANGE The lives of people served by charities improve Charities increase their impact Charities and funders are aware of good practices Barriers / opportunities to increasing impact are known and understood Effective charities are funded / grow Structures & processes support effectiveness of funders and charities Charities & funders are inspired to measure and increase their effectiveness Charities demonstrate their impact to funders Charities & funders understand their effectiveness Charities & funders access skills & knowledge to increase effectiveness Funders target and support effective charities Barriers / opportunities to increasing impact are addressed by sector Change for organisations Change for the charity sector This combines the changes both at an organisational level and sector level that contribute to our overall goal.

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT 9 HOW DO WE MAKE THIS HAPPEN? The lives of people served by charities improve Charities increase their impact Charities and funders are aware of good practices Barriers / opportunities to increasing impact are known and understood Effective charities are funded / grow Structures & processes support effectiveness of funders and charities Charities & funders are inspired to measure and increase their effectiveness Charities demonstrate their impact to funders Charities & funders understand their effectiveness Charities & funders access skills & knowledge to increase effectiveness Funders target and support effective charities Barriers / opportunities to increasing impact are addressed by sector Advise on selecting / supporting charities Advise how to report impact Advise how to assess impact Champion improving impact Devise and help implement solutions Identify barriers to effectiveness and solutions Disseminate good practice and raise the bar Advise on increasing effectiveness: strategy, measurement, funding Highlight and encourage innovation Support sector to change and adapt

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT MORE ON OUR ACTIVITIES 10 To help charities increase their impact we inspire and enable them to measure and increase their effectiveness through our advocacy work, publications, blogs, events and conferences. This also helps equip them with the practical skills and knowledge needed to assess and increase their effectiveness. Our one-to-one consultancy, tailored training courses and impact evaluation services take this a step further and are based on good practice within the sector. To help funders support effective charities we advise charities on how to demonstrate and report their impact more effectively. We then help funders select most effective charities, develop their grant-making processes, and ensure their support has the most positive impact it can. At a sector level, we works towards implementing structures and processes that help the charity sector be effective both today and in the future. We highlight and encourage innovation and raise the bar by disseminating best practice. We bring charities, social enterprises, trusts and foundations, corporates, individuals and families, professional advisors and the government together to collaborate, consider key issues and adapt to prepare for the changes of tomorrow.

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT HOW DO WE MEASURE THIS? 11 The outcomes we aim to achieve are not straightforward to measure but we are developing an approach that balances a robust methodology with proportional use of resources. We can track three different types of indicators: –Outputs of our activities: numbers of clients, events, report downloads etc. –Direct outcomes: mainly from the individual clients we work with and our event and training participants. –Indirect outcomes: changes in the sector such as more charities using robust measurement techniques. Measures of sector-wide change can often not be sensibly attributed only to NPC. We currently track our impact in several ways including through client surveys and follow up interviews, participant feedback forms from our training and events, publication downloads and other digital stats and media clippings.

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT OUR RESULTS SO FAR Change for individual organisations 58 clients advised 81% said they would take action as a result of our adviceour advice 83% think implementing our recommendations will make them more effective 16 training sessions for charities & funderstraining sessions 80% of attendees said they will or might make changes as a result 95% of Selecting great charities attendees said they will use the techniques and approaches Helped select grantees for funder clients Including the Stone Family FoundationStone Family Foundation 12 Change for the sector 80,000 publications downloaded from our websitepublications 13 reports on barriers / solutions to effectiveness Over 2,500 people attended our sector events sector events 80% of the stakeholder sample surveyed* agreed that NPC played a role in transforming the sector Only 5% disagreed Forged a multi-year partnership with 7 sector-wide organisations to make high quality impact measurement the normmulti-year partnership *Sample selected at random from our database—136 responses. All other stats from period July

X AXIS LOWER LIMIT UPPER LIMIT CHART TOP Y AXIS LIMIT v 13 New Philanthropy Capital 185 Park Street, London SE1 9BL Registered charity No A company limited by guarantee Registered in England and Wales No TRANSFORMING THE CHARITY SECTOR