To provide an even more intensive learning experience at Grantmakers for Education's 2006 conference, the program featured a conference "study group." This special small-group program track focused on foundation strategy and the value of a well-crafted theory of change for increasing strategic clarity and impact. This report is intended to make the study group's learning available to more education grantmakers and other interested readers. The study group took up three major questions: (1) What is a theory of change, and why would it be useful to a foundation?; (2) How have some foundations employed a theory of change?; and (3) How would my foundation start to create a theory of change? Designed especially for leaders of small and mid-size foundations, the study group included several participants who were deeply engaged in developing theories of change or clarifying strategies for their foundations. Others were contemplating the process or seeking information to bring back to their boards and staff. The group met three times over the course of the conference for workshops and work sessions. (Contains 5 figures and 3 resources.)