Drawing on Charles Tilly's theory of social categorization, this article deals with how some client-governed organizations in Sweden strive to evade the phenomenon of stigmatizing social categorization, and consequently the creation of durable inequality. First, the historical role played by voluntary organizations in defining and treating social problems is outlined. The key notion here is 'categorization'. Second, the paper describes how the emerging client organizations struggled to redefine social categories, claiming that the real social problems were social inequality and social exclusion. Third, the example of Basta Co-operative is employed in order to discuss Tilly's notion that organizational innovation is one way to reduce durable inequality. The account of Basta Co-operative is based on a qualitative case study. Basta is a user-driven co-operative with the aim of assisting people with drug problems. The foundation of rehabilitation is self-help and user-controlled enterprise.