Collaboration between state agencies and civil society organizations is widespread and plays an increasingly important role, especially at the local level as many municipalities suffer from financial restrictions, whereas the demand for state interventions enhanced. Civil engagement might fill this gap. Consequently, scientific literature analyzing these forms of cooperation increased. However, most contributions have a look on the distribution of such collaborations, their effects on democratic responsiveness or their efficiency in delivering public services. What so far is neglected is a closer look at their formation process and herein which role bureaucrats at the local level play in the early stage of working together. Hence, this contribution aims to find out in what way street-level bureaucrats use their discretion to promote cooperation with some organizations, but hamper the involvement of others. Empirically, I concentrate on the cooperation of local authorities, in particular volunteer agencies, with faith-based organizations in the fields of elderly care and integration in Germany. There, we can see that Muslim organizations are less engaged in local governance networks than other faith-based organizations. I expect that this underrepresentation is not only the product of Muslim organization’s lower willingness to enter such cooperation but also results from street-level bureaucrat’s inhibitions. As their behavior is affected by the use of coping strategies, like efficiency-seeking and stereotyping, an unequal treatment of Muslim organizations might emerge. This argument is tested with the help of a field experiment as well as qualitative interviews with local volunteer coordinators and faith-based organizations.