Great changes are on the horizon for charities using Microsoft’s free cloud tools. For years, Microsoft offered 10 free Microsoft 365 Business Premium licences and unlimited free Office 365 E1 access to eligible non-profits, a crucial support that allowed small charities to stay secure, connected and professional, without the financial strain. It levelled the playing field, letting even the smallest teams work like tech-savvy pros.
But that lifeline is coming to an end. From 1st July 2025, Microsoft will discontinue these free licences. After a short grace period, non-profits will need to start paying for the tools they’ve relied on for years.
This update will hit small charities the hardest, the ones that struggle the most to maximise their impact while working with tight budgets. But don’t let this change derail your digital operations.
In this blog, we’ll break down exactly what this Microsoft update means, what your charity needs to do next, and how Qlic is here to support you through every step of the transition.
Office 365 E1 and Microsoft 365 Business Premium Grant Discontinuation: What Does It Mean for Nonprofits?
From 1st July 2025, Microsoft’s free grants for Microsoft 365 Business Premium and Office 365 E1 are coming to an end. But this doesn’t mean you’ll lose access entirely. These plans will still be available to eligible charities, just no longer free.
Instead, Microsoft is shifting nonprofits over to its discounted pricing structure. According to their official guidance, charities will be able to access discounts of up to 75% off many Microsoft 365 plans, including Microsoft 365 Business Premium and E1. This update only affects organisations presently receiving these licences as part of Microsoft’s grant programme.
It’s a shift in how support is offered, and while it may add new costs, it also brings an opportunity to reassess your setup and unlock more value from the platform.
When is the Grant Expiration Date?
Although the changes technically begin on 1st July 2025, the real impact depends on your next renewal date.
If your organisation renews before 1st July 2025, you’ll keep your donated Business Premium and/or E1 licences for the remainder of your commitment. For example, a nonprofit with an annual commitment renewing on 30th September 2025 would retain access until 30th September 2026.
In other words, acting early gives you more time to prepare, and possibly stretch the value of your current grant further.
Microsoft 365 Business Premium
Until now, Microsoft 365 Business Premium has been free for up to 10 users through the Microsoft grant scheme. Going forward, eligible charities can still get this license, but at a reduced nonprofit rate of $5.50/user/month.
What do you get for that?
If you don’t know this already, Microsoft 365 Business Premium includes everything in Business Standard, plus powerful features designed to help nonprofits work more securely and efficiently:
- Advanced security and cyberthreat protection
- Advanced device management through Microsoft Intune
- Microsoft 365 Copilot (available as an add-on)
- Microsoft Purview for data governance
- Publisher (PC only)
- Microsoft Defender for real-time intelligent security
- Full access to Office desktop apps
Check out this blog for a detailed overview of Microsoft 365 for charities.
Office 365 E1 via Enterprise Agreement
For larger charities or federated organisations, there’s another option: up to 2,000 free E1 licences are still available if you enter into a Microsoft Enterprise Agreement.
The Office 365 E1 plan is Microsoft’s entry-level enterprise suite. It includes web-based versions of Office apps like Word, Excel, PowerPoint, and Outlook, as well as primary cloud tools such as OneDrive, SharePoint, and Exchange Online. While it doesn’t offer desktop apps, it’s ideal for teams that just need online collaboration and communication tools.
With this plan, you also get:
- The latest web-based Microsoft 365 apps
- Email, file storage, and file sharing
- Five layers of security and threat monitoring
- A financially-backed 99.9% uptime guarantee
- Access to Microsoft’s AI tools for writing, analysis and support
The standard retail price of E1 is currently £6 per user, but remember, nonprofits can still get it heavily discounted or free under an Enterprise Agreement. You can check Microsoft’s pricing here.
What Should Your Charity Do Next?
Now’s the time for nonprofits to take a close look at their Microsoft 365 setup. With free nonprofit grants being discontinued, every organisation should re-evaluate what they need and why they chose Business Premium or E1 in the first place. For example:
- Do you need desktop Office apps?
- Is device security a priority?
- Do your staff work remotely across multiple locations?
Understanding your day-to-day requirements will help guide your next step.
Essentially, Microsoft won’t automatically move you to a new plan when the grant ends. That means if you don’t act, you could face service disruption or even data loss. To prevent that, log into your 365 Admin Centre and proactively update your licences before your renewal date.
Keep in mind: although Microsoft shows prices as a monthly cost, charities commit to an annual agreement. You’ll be charged for the full year upfront (or monthly under a 12-month contract) with only a short cancellation window around your renewal.
What are the options?
Option 1 – Maintain Zero Cost and Switch to Business Basic
If keeping costs down is your top priority, Microsoft 365 Business Basic is still available free of charge for eligible charities.
Pros:
- Zero cost
- Includes web-based Office apps (Word, Excel, PowerPoint, Outlook)
- Access to core services like SharePoint, Exchange, OneDrive, and Teams
- Strong collaboration tools for cloud-based working
- Ideal for: Smaller charities with simple IT needs and staff comfortable using cloud-based tools only.
Cons:
- No desktop Office apps – web-only versions
- No advanced security features or device management
- Not suitable for teams needing offline access or advanced compliance
Option 2 – Prioritise Office for Desktop and Shift to Business Standard
If your team relies on desktop versions of Word, Excel and Outlook, Business Standard offers a good middle ground at a discounted rate.
Pros:
- Includes full Office desktop apps
- Offers OneDrive, SharePoint, and Teams
- Strong compatibility and familiarity for most users
Cons:
- No advanced security or device management (unlike Business Premium)
- Monthly cost per user – needs to be budgeted for
This plan is ideal for teams working on complicated documents, needing full app functionality and offline access, without the need for layered security.
Don’t Go It Alone: Qlic IT Can Help!
At Qlic IT, we’ve already helped hundreds of charities navigate Microsoft’s evolving licensing landscape. We understand how unsettling these changes can be, especially for smaller organisations where every penny and every minute count.
Our team will work closely with you to:
- Audit your current Microsoft 365 usage
- Map out which plan best suits your charity’s structure and goals
- Ensure a smooth transition with zero disruption
- Handle admin centre changes and licence assignments for you
- Set up enhanced security and Microsoft Intune where required
And if you’re unsure what your current setup includes, we’ll help you get full visibility, fast.
Microsoft’s grant programmes have been a lifeline for nonprofits, giving access to powerful tools without the hefty costs. These grant offers helped level the digital playing field, particularly for small charities working hard with limited budgets.
And while the shift away from free licences is substantial, the right support and guidance can make all the difference. Whether it’s switching to the right plan, understanding what you’re using, or securing your systems for the future, this transition doesn’t have to be painful.
With a trusted IT partner like Qlic IT by your side, you can turn this challenge into a smarter, more sustainable setup that supports your mission long-term.
Does your charity need help with Microsoft 365 grants and licences?
