Big news for nonprofit organizations using Microsoft 365 - starting 2025 July 1, Microsoft is ending certain free (grant-based) licenses including the popular Microsoft 365 Business Premium and Office 365 E1 plans. If your organization relies on these free tools, don’t panic but you’ll need to prepare.
❌ What’s Changing?
Microsoft will retire the following free (donated) licenses:
- Microsoft 365 Business Premium (grant)
- Office 365 E1 (grant)
After 2025 July 1, these will no longer be available as free grants. If your renewal date is after this, your organization will lose access to those licenses unless you take action. Else you can keep using it normally until the next renewal date.
✅ What’s Still Available?
🎁 Free Microsoft 365 Business Basic (up to 300 users)
This plan includes:
- Web & mobile versions of Office apps (Word, Excel, PowerPoint, etc.)
- Outlook (email hosting with a 50GB mailbox)
- Microsoft Teams
- SharePoint
- 1 TB OneDrive storage per user
Note: This version doesn’t include desktop Office apps or advanced security features.
💸 Discounted Paid Plans Still Available
If you need the full desktop Office apps or more security features, Microsoft still offers up to 75% discounts for nonprofits on paid plans:
- Microsoft 365 Business Premium
- Office 365 E1 / E3 / E5
These discounted options are still a great deal and ensure you can continue using familiar tools without interruption.
🔁 What Should Nonprofits Do Now?
- Review your current licenses – Are you using Business Premium (grant) or E1 (grant)?
- Check your renewal date – If it's after 2025 July 1, you’ll need to transition.
- Choose a new plan – Decide if Business Basic (free) is enough or if a discounted paid plan is better.
- Prepare for migration – Start planning now to avoid any last-minute disruptions.
- Backup your data – After expiration, Microsoft gives you 30 days of access and 60 more days to activate a new plan before deleting your data.
💬 Final Thoughts
Microsoft’s shift may feel sudden, but it’s also a good opportunity to reassess your organization’s needs and optimize your tech stack. Whether you switch to a free plan or invest in discounted licenses, the tools are still there to help your mission grow.
Stay Informed, Stay Prepared !
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