Major Changes Ahead for Microsoft’s Nonprofit Grant Licenses
Microsoft is making significant nonprofit grant changes starting in July 2025, including the retirement of its Business Premium and Office 365 E1 free licensing programs. These updates only impact free grant-based licenses and will take effect at the next renewal for each nonprofit after that date. Paid nonprofit licenses are not affected.
This shift is part of Microsoft’s broader effort to simplify its licensing and help organizations move toward more modern, secure solutions.
What’s Changing in Microsoft’s Nonprofit Grant Program
If your nonprofit is currently using one of these grants, here’s what’s ending:
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Microsoft 365 Business Premium Grant
Discontinued at your next renewal after July 1, 2025 -
Office 365 E1 Grant
Also ends at renewal dates following July 1, 2025 -
Office 365 E1 will still be available through Microsoft’s Enterprise Agreement for eligible nonprofits
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Discounted paid options remain available for both plans and many are discounted approximately 75% of normal pricing.
Why Microsoft Is Changing Its Nonprofit Grant Licenses
Microsoft’s Tech for Social Impact team is streamlining offerings to reduce confusion and overlap. The similarity between Business Basic and E1, for example, led to the decision to focus on just one.
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Business Basic becomes the standard free offer
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Nonprofits are encouraged to adopt more secure, AI-ready tools
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Modern collaboration features are prioritized in discounted plans like Business Premium
By reducing complexity, Microsoft aims to make it easier for nonprofits to select the right tools and improve their long-term security posture.
New Options After Microsoft’s Nonprofit Grant Changes
To support nonprofits during the transition, Microsoft is offering both a new grant plan and discounted alternatives.
Microsoft 365 Business Basic (Grant – Up to 300 Users)
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Web and mobile Office apps (Word, Excel, PowerPoint, Outlook)
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Microsoft Teams, SharePoint, and Bookings
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1 TB of OneDrive storage per user
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Business-class email hosting
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Does not include desktop Office apps
Microsoft 365 Business Premium (Discounted)
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Full Office desktop apps
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Enhanced security, compliance, and identity features
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Access to apps like Planner, Loop, Clipchamp, and Bookings
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Microsoft 365 Copilot compatibility for AI support
Office 365 E1 via Enterprise Agreement
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Available for larger nonprofits with over 300 users
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Up to 2,000 seats may be granted under an EA
These options allow organizations to scale based on their size, security needs, and collaboration goals.
How to Prepare for the Microsoft Nonprofit Grant Discontinuation
To avoid disruption, we recommend taking the following steps now:
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Check your renewal date
These changes apply only at your next license renewal after July 1, 2025 -
Review your current plan
Identify if you’re using a grant-based version of Business Premium or Office 365 E1 -
Evaluate your needs
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Fewer than 300 users? Business Basic may be enough
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Need full desktop tools or advanced security? Consider Business Premium
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Over 300 users? You may qualify for Office 365 E1 through an Enterprise Agreement
- Need some of each? Consider mixing & matching to fit the user profile you need
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Plan your transition early
Avoid losing access or data by acting well before your renewal
Important Data Retention Info
After a grant license expires:
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You’ll have 30 days of access
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You’ll then have 60 days to activate a new plan before Microsoft deletes the data
This grace period offers a critical window for organizations to make the switch without losing files or productivity.
How We’re Supporting Nonprofits Through This Change
Our team at ABM Technology Group is ready to assist with:
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Reviewing your current Microsoft environment and renewal timelines
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Recommending the right licensing path based on your goals and user count
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Assisting with account transitions and data protection
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Providing optional nonprofit security assessments to strengthen your setup
Whether you’re moving to Business Basic or upgrading to Premium, we’re here to guide you every step of the way.
Key Date to Remember
July 1, 2025 – Microsoft begins discontinuing grant-based nonprofit licenses for Microsoft 365 Business Premium and Office 365 E1. The change takes effect at your next renewal.
Lets Get Ahead of This Together
Changes like this can be disruptive — but they don’t have to be. Whether you’re looking to move to Business Basic, explore discounted options, or just need clarity on what’s next, we’re here to help.
Let’s review your current setup and build a transition plan that fits your organization’s needs.
Get in touch with our team to get started.
