[kc_row _id="240732"][kc_column width="12/12" video_mute="no" _id="309797"][kc_column_text _id="166395" css_custom="{`kc-css`:{}}"] AI in Business: A Real Talk Guide for…
Microsoft Ending Nonprofit Grants for Microsoft 365 Business Premium and Office 365 E1
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Microsoft’s 2025 Nonprofit Grants Changes: What Charities Need to Know
[/kc_column_text][kc_column_text _id=”451078″ css_custom=”{`kc-css`:{}}”]Microsoft has announced a significant shift in its nonprofit licensing program, set to take effect from July 1, 2025. This change will impact thousands of charities and nonprofit organisations globally, including those in the UK, who currently rely on Microsoft’s donated software to power their operations.
What’s Changing with Microsoft Nonprofit Grants?
As of the next license renewal after July 1, 2025, Microsoft will discontinue its free grants for Microsoft 365 Business Premium and Office 365 E1 plans. These grants have long provided nonprofits with access to full desktop versions of Office apps, advanced security features, and enterprise-grade collaboration tools—at no cost. Eligibility determinations for these grants can take up to 10 business days and may require additional documentation.
In their place, Microsoft will offer:
- Up to 300 free licenses of Microsoft 365 Business Basic, which includes web and mobile versions of Office apps, Teams, SharePoint, OneDrive, and email. The timeframe for receiving eligibility determinations can vary depending on nonprofit responsiveness and specific country requirements.
- Discounts of up to 75% on other Microsoft 365 plans, including Business Premium and Office 365 E1
Nonprofit Licenses and Pricing
Microsoft offers a variety of nonprofit licenses and pricing options tailored to the needs of eligible nonprofit organisations. These include Microsoft 365 Business Basic, Microsoft 365 Business Standard, and Microsoft 365 Business Premium. For nonprofits, Microsoft 365 Business Basic is available for free for up to 300 users, providing access to web and mobile versions of Office apps, Microsoft Teams, SharePoint, OneDrive, and email.
For those needing more advanced features, Microsoft 365 Business Standard and Business Premium are available at discounted rates. These plans include additional tools such as device management capabilities, cyber security tools and more. To qualify for these nonprofit licenses, organisations must meet specific eligibility criteria, including being a registered nonprofit with valid nonprofit status. This ensures that the benefits are directed towards organisations that operate on a not-for-profit basis and are dedicated to social impact.
[/kc_column_text][/kc_column_inner][/kc_row_inner][/kc_column][kc_column width=”50%” video_mute=”no” _id=”556251″][kc_row_inner column_align=”middle” video_mute=”no” _id=”240084″][kc_column_inner width=”100%” _id=”38368″][kc_spacing height=”15px” _id=”966481″][kc_raw_code code=”PGRpdiBjbGFzcz0icGlwZWRyaXZlV2ViRm9ybXMiIGRhdGEtcGQtd2ViZm9ybXM9Imh0dHBzOi8vd2ViZm9ybXMucGlwZWRyaXZlLmNvbS9mLzY0SnJsajhGeFJzUzFrc09lMXhFekI5RmxVaWNZTlYwSGE5bjJLb2JJWGFrM1BvU1JhRkhsbGZlNXpXMDVyYkE0UCI+PHNjcmlwdCBzcmM9Imh0dHBzOi8vd2ViZm9ybXMucGlwZWRyaXZlLmNvbS9mL2xvYWRlciI+PC9zY3JpcHQ+PC9kaXY+” _id=”833751″][/kc_column_inner][/kc_row_inner][/kc_column][/kc_row][kc_row use_container=”yes” _id=”129850″][kc_column width=”100%” video_mute=”no” _id=”695552″][kc_row_inner column_align=”middle” video_mute=”no” _id=”201851″][kc_column_inner width=”100%” _id=”844179″][kc_spacing height=”15px” _id=”752652″][kc_column_text _id=”452765″]Nonprofit Grants and Discounts
Microsoft is committed to providing affordable and accessible technology to eligible nonprofit organisations through its grants and discounts although the grants have now disappeared, heavily discounted pricing for other Microsoft products and services is available. Nonprofits can apply for these grants and discounts through the Microsoft nonprofit program, which aims to lower the cost of technology solutions for nonprofits.
The program offers a range of benefits, including access to Microsoft 365, Azure, and Dynamics 365, along with digital skilling and data protection services. By leveraging these discounts, nonprofits can reduce costs and enhance their operational efficiency, allowing them to focus more resources on their core missions.
[/kc_column_text][/kc_column_inner][/kc_row_inner][/kc_column][/kc_row][kc_row use_container=”yes” _id=”15737″][kc_column width=”100%” video_mute=”no” _id=”430001″][kc_row_inner column_align=”middle” video_mute=”no” _id=”639570″][kc_column_inner width=”100%” _id=”866667″][kc_column_text _id=”414452″]The Impact of Nonprofit Grants on Charities
This change is likely to have a significant operational and financial impact, especially for small to mid-sized charities that have built their workflows around the full-featured desktop apps and security tools included in the now-discontinued grants. Microsoft Teams Web can still empower staff by providing tools for remote work, even without desktop versions.
For example, Microsoft 365 Business Basic does not include desktop versions of Word, Excel, or Outlook, nor does it offer tools like Microsoft Intune or advanced threat protection. However, free licenses for Microsoft 365 Business Basic are available, which include web and mobile versions of Office apps. This could hinder productivity for staff who rely on offline access or advanced features.
Larger nonprofits may also face challenges. While organisations with over 300 users can still access up to 2,000 Office 365 E1 licenses through an Enterprise Agreement, this comes with added complexity and cost.
[/kc_column_text][/kc_column_inner][/kc_row_inner][/kc_column][/kc_row][kc_row use_container=”yes” _id=”905454″][kc_column width=”12/12″ video_mute=”no” _id=”797661″][kc_row_inner column_align=”middle” video_mute=”no” _id=”67631″][kc_column_inner width=”100%” _id=”620883″][kc_column_text _id=”643477″]AI and Machine Learning
Microsoft provides a suite of AI and machine learning solutions designed to empower nonprofit organisations. One such tool is Microsoft 365 Copilot, an AI-powered assistant that helps boost productivity and creativity. Nonprofits can also utilize Power Apps, a business application suite that enables the creation of custom business applications tailored to their specific needs.
To help nonprofits maximize the benefits of these advanced tools, Microsoft offers a range of training and support services. These include online tutorials, webinars, and workshops, as well as access to Microsoft’s AI and machine learning experts. By integrating AI and machine learning into their operations, nonprofits can enhance their efficiency and effectiveness, driving greater social impact.
[/kc_column_text][/kc_column_inner][/kc_row_inner][kc_spacing height=”15px” _id=”325872″][kc_single_image image_size=”__empty__” _id=”156808″ image_source=”media_library” alt=”AI for Business” css_custom=”{`kc-css`:{`any`:{`image-style`:{`text-align|`:`center`,`vertical-align|img`:`middle`}}}}” image=”27230″][kc_spacing height=”15px” _id=”400623″][kc_column_text _id=”202969″]Options Moving Forward with Microsoft 365 Business Premium
Charities now face a few key decisions following these nonprofit grants changes:
- Evaluate Needs: Identify which users truly need desktop apps or advanced features. Some staff may be able to work effectively with Business Basic. Cloud services like Microsoft 365 and Azure can be part of the solution for charities evaluating their needs.
- Budget for Licensing: For those who need more, Microsoft’s discounted rates are still competitive, but they represent a new cost that must be planned for. Additional users can be added to Microsoft 365 Business Premium for a nominal fee per user per month.
- Explore Alternatives: Some nonprofits may consider alternative productivity suites, though switching platforms can be disruptive and require retraining.
Training and Support
Microsoft is dedicated to supporting nonprofit organisations in their use of Microsoft products and services through comprehensive training and support. This includes online tutorials, webinars, and workshops, as well as direct access to Microsoft’s experts and support team. Nonprofits can also tap into a wealth of resources such as user guides, FAQs, and community forums to troubleshoot and resolve any issues they encounter.
Additionally, Microsoft offers digital transformation services to help nonprofits implement and manage their Microsoft solutions effectively. This includes assistance with assigning licenses, managing Teams attendee registration, and overseeing device management. Through its nonprofit program, Microsoft aims to equip eligible nonprofits with the technology and support they need to achieve their missions and make a significant social impact.
[/kc_column_text][kc_spacing height=”35px” _id=”1838″][kc_column_text _id=”819083″]Challenges Ahead for Charity and Nonprofit grants
The biggest issue for many charities will be budgeting and planning. Nonprofits often operate on tight margins, and even discounted software can strain resources. Additionally, the transition period—especially for those with renewals shortly after July 1—may not leave enough time for thorough planning. The timeframe for eligibility determinations can vary depending on nonprofit responsiveness and specific country requirements.
There’s also the risk of digital inequality. Smaller charities with fewer resources may struggle more than larger organisations to absorb these changes, potentially widening the tech gap in the sector.
Final Thoughts on Affordable and Accessible Technology
While Microsoft’s continued support through Business Basic and discounted plans is welcome, the loss of fully donated Microsoft 365 Business Premium licenses marks a turning point. Charities must act now to assess their needs, explore their options, and prepare for a more complex licensing landscape. Microsoft cloud subscriptions come with support services to help nonprofits implement and manage their solutions effectively.
If your organisation is affected, consider reaching out to a Microsoft partner or nonprofit IT advisor to help navigate the transition smoothly.
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