Microsoft has announced the discontinuation of free Microsoft 365 Business Premium and Office 365 E1 grants for nonprofits starting July 1, 2025. If your organization uses these licenses, it’s important to plan ahead to avoid service interruptions and unexpected costs.
What the End of Microsoft 365 Nonprofit Grants Means
The phase-out of Microsoft’s free nonprofit grants means that organizations will no longer receive Business Premium and Office 365 E1 licenses at no cost. After July 2025, nonprofits must switch to paid subscriptions or other discounted offerings.
Available Licensing Options After Grant Removal
While the grants are ending, Microsoft will continue to provide:
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Up to 300 free licenses for Microsoft 365 Business Basic
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Discounts of up to 75% on various Microsoft 365 plans, such as Business Premium at $5.50 per user per month
These options offer nonprofits flexible pathways to maintain access to Microsoft tools.
How Nonprofits Can Prepare for Licensing Changes
To smoothly transition away from the grants, nonprofits should:
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Evaluate Current License Usage – Identify which users need ongoing access.
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Prioritize Essential Licenses – Limit paid licenses to core team members.
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Budget for New Licensing Costs – Account for the shift to paid plans.
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Consult Microsoft Partners for Guidance – Ensure a seamless migration and cost-effective setup.
Alternative Solutions for Nonprofits Post-Grant
Consider these alternatives for your IT needs:
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Continue with Microsoft 365 Business Basic grants if suitable
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Explore other productivity suites like Google Workspace for Nonprofits
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Adjust IT budgets to accommodate new licensing fees
Final Thoughts on Microsoft 365 Licensing Updates for Charities
The upcoming changes to Microsoft’s nonprofit licensing mark a major shift in how technology support is delivered to charitable organizations. Early preparation and exploring available options can help nonprofits avoid disruption and maintain productivity.
This is absolutely brutal for NonProfits! Could end up costing them way more than they can afford!