In this paper, we examine community collectives—place-based, community-led initiatives for sustainable livelihood, as an alternative to the top-down, efficiency-driven economic model. Drawing on the theoretical framework of prefigurative organizing, we examined the strategies employed by community members in confronting entrenched inequalities and overcoming marginalization as they envision and engage in inclusive futures. We conducted a comparative case study of two exemplary community collectives in India that exhibited differences in the degree of internal and external marginalization. We identify two key cross-cutting themes of prefigurative organizing: projective cultural adjustment - whether a community leverages their traditional culture or breaks away from it, and tempered autonomy – negotiating autonomy without overtly challenging dominant groups, and exercising self-imposed restraints to make independent decisions. We show how these two themes manifested across three key processes of prefigurative organizing: prefiguring self-governance; commoning; and cultivating discursive spaces. These findings help us theorize that in communities where the degree of internal marginalization is high due to persisting social hierarchies, breaking away from past discriminatory practices, incorporating suspension of consent in the decision-making process, and introducing multiple constructive works are essential components of prefigurative organizing. In communities where the degree of external marginalization is high, building on the past, incorporating refusal in decision-making, and introducing unified constructive work are important components of prefigurative organizing. We suggest that prefigurative organizing against the dominant power structure, whether within community social hierarchies or external exploitative political-economic structures, is based on selective and strategic engagement without seeking an exit, as exit might not be an option for place-based communities. We discuss the theoretical and practical implications of this research for alternative organizing and grand challenges.