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Microsoft has announced significant changes to its nonprofit licensing program that will affect charities and nonprofit organisations worldwide, including those in the UK. As of July 1, 2025, Microsoft will discontinue the free Microsoft 365 Business Premium and Office 365 E1 grants currently offered to eligible nonprofits.
What This Means
If your charity currently receives donated Microsoft 365 Business Premium or Office 365 E1 licenses, these grants will no longer be available after your next license renewal following July 1, 2025. For example, if your renewal is scheduled for October 2025, your existing grant will remain active until that date but will not be eligible for renewal under the current terms.
What Will Be Offered Instead
Microsoft will continue to support nonprofit organisations through:
- Up to 300 free licenses of Microsoft 365 Business Basic
- Includes web and mobile versions of Office apps, Microsoft Teams, SharePoint, OneDrive, and business-class email.
- It does not include the desktop versions of Word, Excel, Outlook, or advanced security features like Microsoft Intune.
- Discounts of up to 75% on other Microsoft 365 plans, such as:
- Microsoft 365 Business Premium (~£4.20/user/month for nonprofits)
- Office 365 E1 and other enterprise-grade services
Why This Matters
This change may significantly impact your charity’s operations, especially if your users rely on the desktop versions of Microsoft Office apps or advanced security features. Planning is crucial to ensure continuity of service and budgeting for future licensing costs.
Our Recommendation
We strongly encourage all nonprofit clients to:
- Review your current Microsoft licensing
- Identify users who require advanced features
- Evaluate which plan is most appropriate for your needs
- Plan and budget for the transition
Our team is here to help. Please get in touch if you need assistance assessing your current licensing or preparing for these upcoming changes. We can provide a tailored review and help you transition smoothly with minimal disruption.
Need Help?
Contact us at support@iconology.co.uk to schedule a free consultation or licensing review.
Stay ahead of the changes and ensure your charity continues to benefit from the tools and technology it needs to succeed.
Frequently Asked Questions (FAQ)
Microsoft is discontinuing its free grants for Microsoft 365 Business Premium and Office 365 E1 plans for nonprofit organisations. This change will take effect at your next license renewal after July 1, 2025.
Yes, this is a global policy change by Microsoft and will affect all eligible nonprofit organisations, including those in the UK.
Microsoft will continue to offer:
– Up to 300 free Microsoft 365 Business Basic licenses
– Discounts of up to 75% on other Microsoft 365 plans, including Business Premium and Office 365 E1
Business Basic includes:
– Web and mobile versions of Word, Excel, and PowerPoint
– Microsoft Teams, SharePoint, OneDrive
– Business-class email (Outlook online)
It does not include:
– Desktop-installed Office apps
– Microsoft Intune or advanced security features
The free grant will end at your next renewal date after July 1, 2025. For example, if your renewal is in November 2025, you can continue using your grant until then.
Pricing may vary slightly, but here are typical nonprofit rates:
Microsoft 365 Business Premium: ~£4.20 per user/month
Office 365 E1: discounted rates with limited functionality
We recommend you:
– Review your current licenses
– Identify which staff members need desktop apps or advanced features
– Budget for potential paid licenses starting after your renewal in 2025
– Contact us for help with transition planning
Yes, nonprofits can assign different license types to different users depending on their needs — for example, some users can be on Business Basic, while others use Business Premium.
Not if you plan ahead. By reviewing and adjusting your licensing in advance of your renewal date, you can ensure a smooth and uninterrupted transition.
We can. Contact us at support@iconology.co.uk or call +44 1303 813700 to schedule a free Microsoft 365 licensing review or to get tailored advice for your organisation.
Managing Director at Iconology Ltd