In this inductive study, we shift the focus of stigma research inside organizational boundaries by examining its relationship with organizational identity. To do so, we draw on the case of Keystone, a social enterprise in the East of England that became stigmatized after it initiated a program of support for a group of migrants in its community. Keystone’s stigmatization precipitated a crisis of organizational identity. We examine how the identity crisis unfolded, focusing on the forms of identity work that Keystone’s leaders enacted in response in order to reframe the meaning that organizational members attached to the stigma. Interestingly, we show not only that the internal effects of stigmatization on identity can be managed, but also that they may facilitate unexpected positive outcomes for organizations.