Forum Discussion
Microsoft 365 Business Premium grant is being discontinued
UPDATED: Microsoft sent affected nonprofit organisations an email similar to the below on Wednesday/Thursday 14/15th May announcing that Microsoft 365 Business Premium grant is being discontinued. A similar message was sent out regarding the end of the Office 365 E1 grant offer.
Microsoft have provided the following further information:
- Partner FAQ: https://partner.microsoft.com/en-AU/asset/collection/microsoft-365-business-premium-and-office-365-e1-grant-discontinuation#/
- Partner office hours: ANNOUNCEMENT: Microsoft 365 Business Premium & Office 365 E1 grant discontinuation | Microsoft Community Hub
- Blog: Transitioning from Microsoft 365 Business Premium to Business Basic: What Nonprofits Need to Know | Microsoft Community Hub
A small Canadian-based nonprofit has set up a change.org petition asking Microsoft to reconsider the decision: https://www.change.org/p/urge-microsoft-to-continue-grant-program-for-nonprofits
Information about the difference between Microsoft 365 Business Basic, Standard and Premium can be found here:
- Visual: https://m365maps.com/files/Microsoft-365-Business-All.htm
- Checklist: https://m365maps.com/matrix.htm#000111000000000000000
Thank you for your feedback. We encourage you to listen to the Office Hours session that was just released if you were unable to attend. Also, please reach out via the Partner Desk with questions and support options.
90 Replies
- JillArmourMicrosoft
Community Manager
This matter has been resolved, and comments are now being turned off for this string. Thank you!
- CestNickellCopper Contributor
This is a real pity. I'm at a very small charity and we had just this year started using 3 users for writing our administration documents and sharing on Sharepoint and for meetings on Teams. We had been about to switch over our domain to Office 365 to use email but I'm glad we didn't as it does not look like a good idea to rely on these grants from Microsoft. We're not a big enough charity to justify spending on these while there are free alternatives available (though less convenient for sure!) so in our case this decision isn't going to earn Microsoft anything, so I'm kind of surprised they thought it worthwhile doing.
- MJC130Copper Contributor
Remember that you can still gain access to the Office basic for no cost, but these are limited to working on the documents within a browser rather than the desktop applications. Still a very viable option for a startup NFP.
- Leslie_Robbins
Microsoft
Thank you for your feedback. We encourage you to listen to the Office Hours session that was just released if you were unable to attend. Also, please reach out via the Partner Desk with questions and support options.
- CestNickellCopper Contributor
It sounds like a real faff to get access to this, has anything actually changed or does the session just repeat what has already been posted here? Given that no-one seems to have posted any updates from it I'm guessing it's the latter so it doesn't sound like it's worth the complication involved in getting access. Is there some other reason we should be registered as partners?
- nonprofit17Brass Contributor
Check out Business Basic. It’s still free but you don’t get to download Office apps, just use online. But the Outlook email etc is still free online.
- MCan56Copper Contributor
Did all notifications go out in mid-May? My church did not receive one, and our next renewal is October 2025. Wondering if I should start planning for transition.
- Leslie_Robbins
Microsoft
Thank you for reaching out and for your question.
Microsoft began notifying eligible nonprofit organizations about the Microsoft 365 Business Premium and Office 365 E1 grant discontinuation in mid-May 2025. These communications were sent to the primary contacts listed in the organization’s Microsoft nonprofit profile. If your church did not receive the notification, it’s possible that the contact information on file may need updating.
To ensure you have the most accurate and up-to-date information, we recommend visiting the official partner resource page: https://partner.microsoft.com/en-us/asset/collection/microsoft-365-business-premium-and-office-365-e1-grant-discontinuation#/
This site is designed for Microsoft partners and includes detailed guidance, timelines, and transition planning resources. If your organization is not a Microsoft partner, we encourage you to engage with your partner representative or reach out via the https://partner.microsoft.com/en-us/support for assistance tailored to your situation.
We appreciate your commitment to your community and are here to support you through this transition.
- Leslie_Robbins
Microsoft
MCan56 & nonprofit17
If available, please bring these questions and points to the next office hours that are taking place this Thursday, July 31: REGISTER: Updated Office Hours – Join Us for Key Updates! | Jul 31 | Microsoft Community Hub- nonprofit17Brass Contributor
I registered. Thanks for the tip.
- JillArmourMicrosoft
Community Manager
Leslie_Robbins FYI.
- nonprofit17Brass Contributor
So I went ahead and bought M365 Business Standard so we will have the apps to download. I added the licenses to my team. So this morning I get the email:
Your subscription to Microsoft 365 Business Premium was successfully renewed on July 2, 2025.
What does this mean? 😕
- JillArmourMicrosoft
Community Manager
Leslie_Robbins can you help here?
- pwisemanCopper Contributor
Same here. I purchased Business Standard for continuity then received the email stating the Business Premium (not for profit, 10 free) has been renewed for another 12 months. I'm in Australia. Not happy if I've just wasted money on an unnecessary licence purchase.
- pwisemanCopper Contributor
I raised a support case with Microsoft and was told that there must have been a glitch with the cancellation and that the successful renewal of the 10 free Business Premium licences will remain for 12 months. Under instruction from Microsoft Support I have cancelled the Business Standard licence I had purchased and was told I would receive a refund in the next invoice cycle (30 days).
- RoaringLambsCopper Contributor
Interesting.... please report back what you find.
- erinyaakvalleyCopper Contributor
Thank you all for the info, this has so helpful for understanding what is going on. The email MS sent alerting us to the cancellation was incredibly unhelpful and we almost assumed it was spam because they're still advertising the grant on their webpage! We JUST switched over to MS this spring, 100% because of the "free" 10 licenses. We're a very small team with no tech budget, we simply needed an email service after the small local company we've used for years stopped offering email service because new regulations made it impossible for them to keep up.
We've been "paying" monthly since we switched, so our licenses are set to expire in July 2025. I'm wondering if we switch over to annual billing now before the grant is canceled, would we keep our "free" licenses until June 2026?
- JillArmourMicrosoft
Community Manager
MartijnElfers is one of our superusers and may have insights into this. 😁
- StewC_bffBrass Contributor
erinyaakvalley, I looked at our account and I see no option to switch to annual billing. I'm assuming the "next renewal" relevant to this change is the "renews on" date that's in the licensing section, and can't game the system.
As for email, remember that M365 Business Basic includes the email functionality, tied to your domain, that you are using today. That product will remain $0 for the first 1000 seats. I created a new email user this morning, on the $0 plan, and the two licenses -- Premium and Basic, co-exist just fine (so far).
- MattBurrIron Contributor
erinyaakvalley, glad you've found it helpful.
I think StewC is correct - unfortunately switching to Annual won't change the renewal date.
Since you're only using the email service and not desktop apps, the free Business Basic licenses will suit your needs. Here's some instructions for switching: https://aka.ms/CustomerGuideFromBPtoBB
- ArkadiuszWierzbaCopper Contributor
For us, small enviromental and multicultural NGO, it will be a disaster. After years of implementing M365 desktop tools — in team with very low digital skills — this change puts us in a position where we either pay for tools we were told were donated to support our mission, or lose access to digital ecosystem that have become essential to our operations.
In our case, it means risking four years of work integrating SharePoint, Teams, Planner, Bookings, Loop, and training people in Office apps. It means potentially migrating somewhere terabytes of data: uploaded into cloud 34 years of project archives, legal interventions, photo and video documentation, community records, financial data. Or it means finding funds we don’t have — or abandoning systems we finally got to work after a massive learning effort.
It looks like the old, disgusting trick: offer something for free, get people invested, then switch to paid — knowing full well they’re too deep in to back out. When this is done by one of the richest companies in the world, to groups who fight air and water pollution, deforestation, climate disaster, changing laws, social exclusion — it hits even harder.
The worst part is that this doesn’t just hurt users — it hurts the causes. This move will weaken civil society. It will set back digitalization in activism by years. Deep disappointment and frustration across the nonprofit community is real. We need Microsoft to hear it loud and clear — and we need allies here in this tech community to speak up with us.
- StewC_bffBrass Contributor
ArkadiuszWierzba, As a small non-profit who works with many other non-profits I sympathize. And agree, it's such a pittance for Msft it baffles me why they bother with the change. But here's how I put it into context:
The incremental cost impact of the M365 Premium grant elimination (setting aside the other licensing changes) is $600/year. Significant for small nonprofits, yes. The incremental cost ($, time, learning curve etc) of the platform migration you outline is surely greater.
Meanwhile, the other costs of operating a non-profit keep going up. Healthcare for our employees, rent on our offices and insurance on our vehicles, event costs, etc...no one is giving that stuff away either.
And in the US, millions of $ in grants to nonprofits were yanked without notice and with total disregard for the positive outcomes these orgs deliver. That's the real disgrace.
As a board member and funder, I'd urge every nonprofit to do defensive budgeting: get pessimistic about revenue sources, and realistic about cost increases.
- ranualIron Contributor
As a CSP partner supporting multiple nonprofit organizations, I want to express my strong concern and disappointment regarding the discontinuation of the Microsoft 365 Business Premium grant.
This change disproportionately impacts small nonprofits—many of whom rely on the full Office desktop apps, Intune, and security features included in Business Premium to operate effectively. These organizations often have little to no IT budget, and this grant has been a critical enabler of their digital transformation.
While Microsoft frames this as a move toward alignment and sustainability, the reality is that it introduces significant new costs for nonprofits that are already stretched thin. For many of my clients, this is not just a licensing change—it’s a potential disruption to their mission-critical operations.
I urge Microsoft to reconsider this decision or at least provide:
- A longer transition period
- A reduced-cost SKU with Office desktop apps for small nonprofits
- More transparent communication and support for partners managing these transitions
I’m also interested in collaborating with other partners to submit collective feedback or an open letter. If you're in the same position, please reply or connect.
Let’s advocate together for the nonprofits we serve.
- MattBurrIron Contributor
Now come the comments from Salesforce... 😞
- MattBurrIron Contributor
...and Google's response: Google for Nonprofits to expand to 100+ new countries and launch 10+ new no-cost AI features
Google for Nonprofits will be expanding to 100 more countries and is introducing new Workspace for Nonprofits and Ad Grants features free of charge to support nonprofits in furthering their missions.
- MarcovanderHeideCopper Contributor
Very disappointed at Microsoft regarding this decision as it impacts specifically small not for profits and charities that are running on "shoestring budgets" this would not impact Microsoft bottom line much but the impact on the NFP organisation is huge.
- Tatsuro_Copper Contributor
So my organization uses business premuim mainly for Intune, AAD and Defender, we work with children so this is how we lockdown and monitor our fleet of computers. As well as adminis have office licenses. E3 and Standard do not offer Intune or Defender. What are my options?? Are they just getting rid of the 10 free license part and keeping the 5.50/month sku? We dont have a large tech budget and really dont want to have to practically dissolve our organization as a result of not having device management
Help appreciated!!!
- MattBurrIron Contributor
Hi Tatsuro_
They are only discontinuing the 10 free licenses. The discounted US$5.50/user/month sku will remain as will all other discounts.
Before the expiry date of your grant subscription, you will need to swap users over to another licence type (that can be the discounted Business Premium license).
Thanks
Matt
- PatrickDrewsTSIBrass Contributor
Yet Microsoft has NOT updated their nonprofit offerings deck! Still shows 10 free BP licenses. 🤬
https://www.microsoft.com/en-us/nonprofits/offers-for-nonprofits
- KomatoastBrass Contributor
I am just wondering if Microsoft has not updated their licensing because either:
- They are waiting to see how much pushback they receive.
- They will update everything the day before the "switch".
I think over 400 have signed the change form. I know it's a drop in the bucket for Microsoft, but hopefully Microsoft sees how much this affects non-profits with smaller budgets. We were initially told this "Grant" was in perpetuity. Hopefully Microsoft is just testing the waters. I guess time will tell.
- GraphBuilderBrass Contributor
Switch happened. No change. This appears to be here to stay.