The text deals with various manners of institutionalization in the field of “independent culture”. Referring to research undertaken both in Poland and abroad, the author criticizes the NGO model, indicating the commercialization and governamentalization of the third sector. As a result, NGO cultural institutions lose their independence, becoming just new tools for making profits or doing state politics. The professionalisation of the NGOs renders them similar to the first or second sectors and makes it impossible for them to act as incubators of social capital for which they have been praised in social theory from de Tocqueville to Putnam. The author believes these recent developments create dangers not only for independent culture itself, but for the entire society. As an academic (but also an experienced activist in the field of cultural production), the author tries to sketch a possible alternative. He puts forward a thesis that the most important thing to consider is the institutional form of cultural production. He believes reforms should be undertaken in the direction of strengthening the autonomy and self-governance of cultural institutions by their democratization. Referring to both theoretical analyses and practical examples, the author presents a model of participatory democracy as a possible solution for the commercialization and governamentalization of the third sector.