As of July 2025, Microsoft has introduced important changes to its nonprofit licensing and sponsorship program. These updates may affect how your organization accesses Microsoft 365 services, so it’s essential to understand what’s changing and how to prepare.

What’s Changing?

Microsoft is streamlining its nonprofit offerings to better align with how organizations use cloud services. Here are the key updates:

1. Discontinuation of Certain Free Licenses

Microsoft will no longer offer free grants for the following products through the Cloud Solution Provider (CSP) and Web Direct channels:

• Microsoft 365 Business Premium
• Office 365 E1

These changes will take effect at your next renewal date on or after July 1, 2025. If your organization currently uses these grants, you’ll need to transition to a different plan or explore discounted options.

2. New Grant Offering: Microsoft 365 Business Basic

Eligible nonprofits can now receive up to 300 free licenses of Microsoft 365 Business Basic. This plan includes essential cloud services such as:

• Web-based Office apps (Word, Excel, PowerPoint)
• Microsoft Teams
• OneDrive (1 TB per user)
• Email hosting with Exchange

This is a great option for organizations that primarily need cloud-based collaboration tools without the full desktop Office suite.

3. Discounted Pricing Still Available

Even though some grants are being phased out, Microsoft continues to offer up to 75% discounts on many Microsoft 365 plans, including:

• Microsoft 365 Business Premium
• Office 365 E1 and E3
• Microsoft 365 E3 and E5

These discounted plans provide access to advanced security, compliance, and productivity tools.

Who’s Eligible?

To qualify for Microsoft nonprofit offers, your organization must:

• Be a legally recognized nonprofit or non-governmental organization
• Operate on a not-for-profit basis
• Have a mission to benefit the broader community (e.g., education, social services, environmental causes) Governmental entities, schools, and certain healthcare organizations may not be eligible.

What Should You Do Next?

If you’re a nonprofit currently using Microsoft 365 grants:

• Review your current licenses and renewal dates
• Evaluate your needs to determine if Business Basic is sufficient or if a discounted plan is more appropriate
• Plan your transition early to avoid service interruptions

We recommend working with your Microsoft partner or IT provider to ensure a smooth transition.

💡 Need Help?

At UNDO IT, we specialize in supporting nonprofits through digital transformation. If you need help navigating these changes or optimizing your Microsoft licensing, don’t hesitate to reach out. We’re here to help you make it right.