Society is facing urgent crises, such as climate change and housing shortages, which increase feelings of uncertainty and distrust towards the government. Many citizens feel powerless and feel a loss of control over their living environment. At the same time, we see a growing movement of self-organisation, in which citizen collectives take responsibility for local challenges in areas such as energy, healthcare and housing. Citizen collectives offer unique solutions through their focus on shared values, sustainability and decentralised decision-making. However, cooperation with governments is often difficult, due to differences in goals and working methods, because the specific institutional logic is not recognised. They are considered ‘hybrid’ organisations, somewhere between market and government, but are neither one nor the other. This article investigates how citizen collectives and governments can collaborate more effectively when this institutional logic and the roles that citizen collectives can play are better known. It also discusses the conditions that are needed to make these initiatives more inclusive and representative. The aim is to harness the power of citizen collectives for necessary societal transitions and the restoration of trust in democratic processes.