This paper proposes a holistic framework called dynamic resistance for analysing and animating third‐sector organizations’ contestations of neoliberalization. It argues that the third sector constitutes a rich terrain for transforming neoliberalization processes to promote human flourishing and social justice. Dynamic resistance comprises four elements—rejection, resilience, resourcefulness, and reflexive practice—within a cyclical process which can occur simultaneously at different organizational scales. Four vignettes, drawn from participatory action research, illustrate these processes at Oblong, a grassroots community group in Leeds which now runs a community centre. Despite engagement with neoliberal mechanisms, Oblong provides an example of dynamic resistance in practice, avoiding “mission drift” and prioritizing self‐defined core values of equality, collectivity, empowerment, sustainability, respect and care, and being community led. Dynamic resistance suggests third‐sector organizations’ capacity to construct transformative social empowerment through ever‐changing practices which are proactive and self‐directed as well as responsive.