Transitioning from Microsoft 365 Business Premium to Business Basic: What Nonprofits Need to Know

As Microsoft begins transitioning out the Business Premium grant for nonprofits, many organizations are reassessing their licensing needs therefore this is an opportunity to streamline operations and continue leveraging powerful tools with Microsoft 365 Business Basic. 

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What Is Microsoft 365 Business Basic? 

Microsoft 365 Business Basic is a cloud-first productivity suite designed for organizations that don’t need desktop Office apps but still want access to essential collaboration and communication tools. It includes: 

✅Web and mobile versions of Word, Excel, PowerPoint, and Outlook 

✅Microsoft Teams for meetings, chat, and collaboration 

✅Exchange Online with a 50 GB mailbox per user 

✅OneDrive for Business with 1 TB of cloud storage 

✅SharePoint Online for document management and team sites 

It’s a cost-effective solution for nonprofits looking to maintain productivity while reducing licensing expenses. 

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The Change 

Microsoft has announced the retirement of the Business Premium grant, which previously provided eligible nonprofits with free access to premium features like desktop Office apps, Intune, and advanced security tools. As a result, many organizations are now exploring Business Basic as a cost-effective alternative. 
 
Note: If your organization decides to continue using Microsoft 365 Business Premium, you may be eligible for a discount of up to 75% through Microsoft’s nonprofit pricing. This can be a great option if you still need access to advanced features. 

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How to Transition from Business Premium to Business Basic 

Here’s a step-by-step guide to help you make the switch smoothly: 

Step 1: Evaluate Your Current Usage 

• Identify users who don’t need desktop apps or advanced security features. 

• Use the Microsoft 365 admin center to review license assignments and usage patterns. 

Step 2: Purchase Business Basic Licenses 

• Go to Microsoft 365 admin center > Billing > Purchase services. 

• Select “Details” next to Microsoft 365 Business Basic and buy the number of licenses you need. Important: Although the process says “purchase,” eligible nonprofits receive the first 300 Business Basic licenses for free. You will not be charged for these licenses, even though they are added through the purchase flow. 

Step 3: Reassign Licenses 

• Navigate to Users > Active users. 

• For each user, go to Licenses and Apps, uncheck Business Premium, and check Business Basic. 

• Save your changes. 

Step 4: Remove Unused Premium Licenses 

• Once all users are reassigned, reduce or cancel your Business Premium licenses to avoid unnecessary charges. 

• Go to Billing > Your Products 

• Click on Microsoft 365 Business Premium, then click remove licenses  

• • Ensure that users have been unassigned licenses or that may cause an error 

Step 5: Communicate the Transition 

• Let your team know what’s changing and what tools they’ll still have access to. 

• Offer training or resources to help them adapt to web-based tools. 

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Business Premium vs Business Basic Comparison 

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What You’ll Still Have with Business Basic 

Despite the changes, you’ll retain access to essential tools that support collaboration and productivity: 

• Web and mobile versions of Office apps 

• Microsoft Teams (chat, call, meet with up to 300 attendees) 

• Business-class email with Exchange 

• 1 TB of OneDrive cloud storage 

• SharePoint 
• Standard security and support 

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Making the Most of Microsoft 365 Business Basic 

Even without desktop apps, Business Basic offers a robust suite of tools to keep your team connected and productive: 

✅ Web-Based Office Apps 

Use Word, Excel, PowerPoint, and Outlook directly in your browser. 
Collaborate in real-time with colleagues on shared documents. 

✅ Microsoft Teams 

Host virtual meetings, chat, and collaborate on files. 
Create channels for departments or projects to streamline communication. 

✅ OneDrive and SharePoint 

Store and share files securely in the cloud. 
Use version history and co-authoring to improve productivity. 

✅ Email and Calendar 

Access professional email with a 50 GB mailbox via Outlook on the web. 
Manage calendars and schedule meetings with ease. 

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Final Thoughts 

While the retirement of the Business Premium grant may require some adjustments, Microsoft 365 Business Basic still provides essential tools to help your nonprofit thrive. With thoughtful planning and a focus on cloud-based collaboration, you can continue to operate efficiently and make a meaningful impact—without breaking your budget.