top of page

Microsoft to End Free Nonprofit Licenses: What’s Next for Your Organisation?

Updated: Jun 28

Microsoft recently announced the discontinuation of free Microsoft 365 Business Premium and Office 365 E1 licenses for nonprofits, effective 1 July, 2025. This change will impact many organisations that rely on these tools to operate effectively.

If your nonprofit uses these licenses, it’s essential to understand what’s changing and how to adapt. Below, we’ve summarised the key points and outlined how you can prepare.


Four glass squares on a vibrant pink and purple gradient background. One square has a crack, adding a sense of imperfection.

What Exactly Is Changing with Microsoft 365 and Office 365?

Free grants of the following licenses will no longer be available:

  • Microsoft 365 Business Premium

  • Office 365 E1


Instead, nonprofits will have access to:

  • Up to 300 granted licenses of Microsoft 365 Business Basic

  • Discounts up to 75% on premium Microsoft 365 solutions (including Business Premium and Office 365 E1)


Note:

  • Grants will expire upon renewal from 1 July, 2025

  • A 30-day grace period will follow, with 60 additional days before data is deleted



Microsoft 365 Business Basic (Grant – Up to 300 users):

  • Web and mobile Office apps (Word, Excel, PowerPoint, Outlook)

  • Microsoft Teams, SharePoint, and Bookings

  • 1 TB of OneDrive storage per user

  • Business-class email hosting

  • Does not include desktop Office apps


Microsoft 365 Business Premium (Discounted only from 1 July):

  • Full Office desktop apps

  • Enhanced security and compliance features

  • Access to apps like Planner, Loop, Clipchamp

  • Microsoft 365 Copilot AI support


People in a meeting room discuss at a table with devices. A man holds a pen, focused. Bright natural light streams in. Relaxed atmosphere.
People in a meeting room discuss at a table with devices.

How Will This Impact Nonprofits?

Nonprofits, particularly smaller organisations with limited funding, may struggle to pay for premium licenses. The additional costs pose a significant challenge for maintaining existing operations.


Premium-grade tools like advanced collaboration features, data analytics, and security layers are essential for improving productivity. Losing free access to these tools could hinder an organisation's growth.


Nonprofits without the financial capacity to upgrade may face difficulties managing workflows, reducing services delivered to the communities they serve and undermining the impact of their missions.


Switching platforms or restructuring software budgets could drain the already limited administrative resources of nonprofits.


Options for moving forward

To minimise any service gaps, consider the following options:

  1. Review Microsoft’s Offer - Utilise the up to 300 free licenses of Microsoft 365 Business Basic offered to nonprofits. While not as robust as Business Premium, this version provides essential collaboration tools like Teams, OneDrive, and Word online.

  2. Explore Nonprofit Discounts - Take advantage of Microsoft’s generous 75% discounts on their premium solutions. While discounts lessen the burden, ensure you assess your organisation's budget to make this transition feasible.

  3. Trial Other Tools and Integrations - Evaluate potential alternatives or complementary software that integrates with Microsoft 365 solutions for nonprofit management. For instance, signing up with a technology partner could provide comprehensive tooling while mitigating costs.

  4. Partner with Technology Experts - Collaborating with a digital agency can streamline your transition away from free licenses. For instance, many technology partner specialise in designing strategies tailored for nonprofits. Their services can include:

    • Platform assessments

    • Workflow automation

    • Streamlined cloud integrations


Partnering with a trusted tech advisor ensures smoother implementation of new systems while optimising your ongoing operations.


Instead, nonprofits will have access to:

  • Up to 300 granted licenses of Microsoft 365 Business Basic

  • Discounts up to 75% on premium Microsoft 365 solutions (including Business Premium and Office 365 E1)


Note:

  • Grants will expire upon renewal from 1 July, 2025

  • A 30-day grace period will follow, with 60 additional days before data is deleted



How We Can Help

At Analog Digital Agency, we understand the unique challenges faced by nonprofits. That's why we offer services designed to simplify digital transitions, secure affordable tools, and boost operational efficiencies. Our nonprofit solutions include:

  1. Cloud-migration strategies, ensuring every dollar works harder for your mission.

  2. AI-powered automation to save valuable team hours.

  3. Seamless Microsoft 365 integrations tailored for nonprofit needs.


Looking for guidance on what's next?

Chat with us for a consultation and discover how we can provide the resources and expertise you need. We understand the unique challenges nonprofits face and have tailored our services to meet those needs.


Woman in office, talking on phone, pointing at documents on desk. Background has shelves with model ships, certificates, and plants.
Woman in office, talking on phone, pointing at documents on desk.

Crafting a path forward together

Microsoft’s changes may be challenging, but they also present opportunities for re-assessment and future-proofing your digital tools. By strategising now and leveraging available resources, you can adapt without compromising the critical work your nonprofit performs daily.


Nonprofits like yours are the backbone of global support networks. Don’t hesitate to take proactive steps and seek assistance when needed. For more details or to discuss your organisation's transition plan, reach out to us at Analog Digital Agency.

Comments

bottom of page