Changes to Microsoft Nonprofit Grants

Microsoft has announced significant changes to its nonprofit grant programs, impacting organizations that rely on free Microsoft 365 services. These adjustments, effective starting July 1, 2025, will alter the licensing landscape for many nonprofits. 

Discontinuation of Free Microsoft 365 Business Premium and Office 365 E1 Licenses

Starting July 1, 2025, Microsoft will discontinue the free grant offers for Microsoft 365 Business Premium and Office 365 E1 licenses for nonprofits. This change takes effect at each organization's next license renewal date following that deadline. For example, if a nonprofit's renewal date is October 2025, they can continue using their current grant licenses until then.

Introduction of Microsoft 365 Business Basic Grant

In place of the discontinued grants, Microsoft will offer up to 300 free licenses of Microsoft 365 Business Basic to eligible nonprofits. This plan includes:

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

• Business email through Exchange

• OneDrive cloud storage

• Teams and SharePoint for collaboration
  
  

Important: Microsoft 365 Business Basic does not include the full desktop-installed versions of Office apps or advanced security features.

Discounted Plans for Nonprofits

Nonprofits requiring desktop Office apps or enhanced security can upgrade to discounted paid licenses. Microsoft offers the following pricing for eligible nonprofit customers:

Implications for Nonprofit Organizations

Organizations currently using donated Business Premium or E1 licenses will need to transition to a new plan once their current term ends. Nonprofits should begin evaluating whether Microsoft 365 Business Basic will meet their ongoing needs, or if a discounted paid plan is required.

If your nonprofit uses desktop Office apps, relies on enhanced security, or needs mobile device management, a shift to Business Premium will likely be necessary.

Microsoft provides a 30-day grace period after a license expires, followed by a 60-day data retention window. During this time, organizations can renew or transition to a new plan before any data loss occurs.

Steps for Nonprofits to Prepare

Review License Renewal Dates
Check when your current licenses are set to renew after July 1, 2025, so you know your deadline to act.

Assess Organizational Needs
Consider your day-to-day operations. Do you need desktop Office apps, advanced security, or just basic email and web tools?

Budget for Potential Costs
If a paid plan is necessary, plan for the added cost now. Microsoft offers strong nonprofit discounts to ease this transition.

Plan for Data Backup
Microsoft 365 is not a backup solution. Be sure to have a third-party backup system in place to protect your files, email, and user data.

Consult with a Microsoft Partner
Work with a knowledgeable Microsoft partner or MSP to ensure a smooth transition and avoid service interruptions.

As a small independent MSP that understands the budget constraints nonprofits face, I am here to help you navigate these Microsoft licensing changes. Whether you need to evaluate your current licensing, explore cost effective alternatives, or ensure your data is properly backed up during this transition, I can support you every step of the way.

Schedule a free consultation to review your nonprofit’s setup and plan your next steps with confidence. I offer personalized support, discounted services, and expertise in cloud services, PBX systems, helpdesk support, antivirus and phishing training, and comprehensive backup solutions that extend beyond Microsoft documents.

Please use the contact form at the bottom of this page to get started. Let me know what you need, and I will follow up with you directly.