The Theory of Change is a specific type of methodology for planning, participation, and evaluation that is used in the philanthropy, not-for-profit, and government sectors to promote social change. It defines long-term goals and then maps backward to identify necessary preconditions. It's a comprehensive description and illustration of how and why a desired change is expected to happen in a particular context.

Component Explanation
Long-Term Goal (Impact) The ultimate desired change or vision you aim to achieve. This is your "big picture" outcome.
Outcomes A sequence of changes necessary to reach the long-term goal. These can be short-term, intermediate, and long-term outcomes building towards the overall impact.
Pre-conditions The essential building blocks required for the outcomes to occur.
Activities (or Interventions) The specific actions and programs implemented to drive towards the outcomes.
Assumptions The underlying beliefs about how your intervention will lead to change. Assumptions link activities, outcomes, and the long-term goal.
External Factors Conditions in the broader environment that can influence the success of your work, either positively or negatively.

How a Theory of Change is Used