The literature on social innovation is growing quickly, covering many aspects of the phenomenon. However, in this chapter, we argue that organizational aspects of social innovation is a topic that deserves more attention. Using institutional theory, more specifically, the concept of legitimacy, the aim is to look at why project grants have become an important way of organizing social innovation processes, especially those that are structured around cross-sector collaboration. The argument is illustrated by five examples of initiatives working with social innovation and social entrepreneurship in the Region of Skåne in southern Sweden.