Microsoft 365 guide

Microsoft 365 Nonprofit Licensing: What Changed

By Gander Web · Updated 11 October 2026 · 2 min read

In short

Microsoft retired its free Microsoft 365 Business Premium grant (10 licences) and the free Office 365 E1 grant, from each organisation's first renewal on or after 1 July 2025. Eligible nonprofits still get up to 300 free Business Basic licences, plus discounted Business Standard, Business Premium and other plans.

The grants renewed yearly, so every organisation that had one has now reached that renewal. If your users were on the free Business Premium or E1 licences, they need to be on Business Basic or a discounted paid plan to keep their email and files.

What Microsoft retired

Each grant ended at the organisation's first renewal on or after 1 July 2025.

What nonprofits can still get

Which plan to move each user to

Most charities end up with a mix. See what Business Basic includes for security and storage.

What to do now

  1. In the admin centre, open Billing > Your products and check which licences you have and who uses them.
  2. Confirm your organisation's eligibility in Microsoft's nonprofit portal.
  3. Move users who only need email and the web apps to Business Basic.
  4. Buy discounted Standard or Premium licences for everyone else, then remove licences nobody uses.

Need help switching licences?

We'll check what each user has, move them to the right plan and keep email and files where they are.

See Microsoft 365

Questions

What changed with Microsoft 365 nonprofit licensing?

Microsoft retired the free Business Premium grant (10 licences) and the free Office 365 E1 grant, from each organisation's first renewal on or after 1 July 2025.

Can nonprofits still get Microsoft 365 for free?

Yes. Eligible nonprofits can get up to 300 free Microsoft 365 Business Basic licences.

Are paid plans still discounted for nonprofits?

Yes. Business Standard, Business Premium and other plans are discounted for eligible organisations, with Business Premium at up to 75% off.

Which plan replaces the Business Premium grant?

Business Basic for staff who work in the browser, discounted Business Standard for desktop Office apps, and discounted Business Premium where you need device management and advanced security.

Can Gander Web help with the change?

Yes. We check your current licences, recommend the right mix and make the switch without losing email or files.