Microsoft is pulling free M365 Business Premium licenses granted to non-profits

Microsoft is pulling free M365 Business Premium licenses granted to non-profits

Microsoft are offering up to 300 free licences for 365 Business Basic as an alternative, whilst other subscriptions could see discounts of up to 75%.

Published on 20th May 2025

Microsoft have confirmed it will be ending free Microsoft 365 Business Premium and Office 365 E1 licenses for non-profit organisations in what it’s calling an effort to “streamline [its] grant offerings and simplify [its] grant portfolio.”

In place of the deprecated scheme, the tech giant will offer a certain number of free licenses along with a hefty discount on other plans, including M365 Business Premium and Office 365 E1.

Those unwilling to benefit from the discount and begin paying a subscription fee will lose access to some of the features they may have become accustomed to with their free licenses.

Nonprofits will no longer receive some free Microsoft 365 subscription benefits

The company confirms that it will replace the scheme with one that enables nonprofits to receive up to 300 licenses for Microsoft 365 Business Basic. Eligible users will also be able to pick up discounts of to 75% on other subscriptions, including Microsoft 365 Business Premium and Office 365 E1.

If a non-profit is small enough to be able to use the free 300 licenses for Business Basic, they will still lose access to desktop versions of the office apps and other features like Intune, therefore, they will be required to pay to reinstate those features.

Despite the hefty discount, some nonprofits may face unexpected costs, especially for features they must now pay for. Being that the nature of non-profits is that finances can be limited, the company has been criticised over its short notice period.

Redmond added: “Our goal in Tech for Social Impact (TSI) is to ensure nonprofits can benefit from the industry leading solutions that are critical to ensuring the highest level of organisational security and productivity.”

It’s unclear what sort of cost savings the company hopes to realize from this readjustment or how many nonprofits will be affected.

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Microsoft

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