Microsoft has announced significant changes to its non-profit programme, discontinuing the free grants for
Microsoft 365 Business Premium and
Office 365 E1 starting
1 July 2025. This move will impact numerous charities and non-profits that have come to rely on these powerful tools to support their missions. While this change may seem daunting, understanding the new landscape and available alternatives can help organisations transition smoothly without disrupting their vital work.
The existing free licences for Business Premium and Office 365 E1 will expire on the next renewal date after 1 July 2025. For example, if an organisation’s renewal is in October 2025, they can continue using the grant until then. After this date, they will need to either transition to a paid plan or explore other solutions. It’s crucial for non-profits to start planning now to avoid any last-minute rushes or loss of service.
Why the Change?
Microsoft is streamlining its non-profit offerings to focus on providing core productivity and security solutions at scale. The company will continue to support the non-profit sector with a combination of free and heavily discounted plans, ensuring that organisations of all sizes have access to essential technology.
What are the Alternatives?
Charities have several paths forward, both within and outside of the Microsoft ecosystem. The best choice will depend on individual needs, budget, and technical requirements.
Microsoft Options
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Microsoft 365 Business Basic: This is the cornerstone of Microsoft’s continued free offerings for non-profits. It provides up to 300 free licences and includes web-based versions of Office apps (Word, Excel, PowerPoint), email, cloud storage (OneDrive), and collaboration tools (Teams and SharePoint). This is an excellent option for organisations where staff primarily need online access and don’t require the full desktop applications.
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Discounted Paid Plans: For those who need more than what Business Basic offers, Microsoft is providing significant discounts of up to 75% on other plans.
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Microsoft 365 Business Standard: A great middle-ground, this plan includes both online and desktop versions of Office apps, along with hosted email and all the features of Business Basic.
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Microsoft 365 Business Premium: For organisations that need the advanced security and device management features they had with the grant, this plan will still be available at a discounted rate.
Other Software Suites
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Google Workspace for Non-profits: A popular and robust free alternative, Google Workspace offers a suite of web-based tools including Gmail, Google Docs, Sheets, Slides, and Google Drive for storage. Paid plans are also available for organisations that need more advanced features.
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Open-Source Office Suites: For a completely free, desktop-based solution, organisations can turn to open-source software like LibreOffice. It offers a full suite of applications that are compatible with Microsoft Office file formats.
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Apple iWork: For organisations that primarily use Apple devices, the iWork suite (Pages, Numbers, Keynote) is a powerful and free alternative. Web-based versions are also available through iCloud.
Considerations for Choosing an Alternative
As you evaluate your options, consider the following:
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Essential Features: Do a thorough audit of what your team truly needs. Do they require desktop applications, or are web-based versions sufficient? Are the advanced security features of Business Premium critical to your operations?
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Budget: Start by exploring the free options like Microsoft 365 Business Basic and Google Workspace for Non-profits. If those don’t meet your needs, then factor in the cost of discounted paid plans.
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User Needs: Recognise that different team members may have different needs. Some may require the full functionality of desktop apps, while others can thrive with web-based tools. A hybrid approach could be the most cost-effective solution.
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Platform Compatibility: If your organisation is heavily invested in a particular ecosystem, like Apple, that may influence your decision.
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Data Security: If you are moving away from the robust security of Business Premium, carefully evaluate the security features of any new solution to ensure your data remains protected.
The discontinuation of these Microsoft grants marks a significant shift for the non-profit sector. However, with careful planning and a clear understanding of the available alternatives, organisations can navigate this change successfully and continue to leverage technology to achieve their missions.
