Microsoft’s New Commerce Experience For Not-For-Profits & Charities

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Last July, Microsoft 365 announced their New Commerce Experience (NCE) was coming to not-for-profit licensing. The shift has now begun. The New Commerce Experience offers charities a number of benefits including digital development.

Microsoft 365 introduced the New Commerce Experience to businesses first and they’re now rolling it out to not-for-profits and charities! Continue reading this blog to learn everything you need about New Commerce for not-for-profits and its benefits:

  1. Cost-Effective IT Solutions for Charities
  2. Flexibility for Larger Charities
  3. Maximising IT Projects

What is NCE and how will the current Microsoft 365 products be affected?

The New Commerce Experience is their newest significant update to nonprofit and charity licensing, offering a range of benefits that could help them manage IT costs more effectively.

NCE introduces a new licensing model called New Commerce Experience (NCE), affecting Microsoft 365, Dynamics 365, Windows 365 and Power Platform subscriptions.

You will be able to purchase licences monthly or under a committed, fixed-term agreement paid for upfront, annually, or monthly.You can find more information on the NCE in our blog Microsoft 365 New Commerce Experience – Everything You Need To Know.

Will Microsoft 365 increase prices or change licensing for charities?

There is currently no announcement on pricing from Microsoft. Depending on the licensing model, businesses’ monthly licensing on the NCE increased by 20%. However, this may not be the same for charities.

Microsoft-led Migration to New Commerce Experience

In January 2024, Microsoft started an automatic migration process to transition all commercial legacy subscriptions to their New Commerce Experience (NCE) model. The process will occur on each subscription’s legacy renewal date.

The auto-migration process:

  • Convert subscriptions to an annual commitment, while preserving current annual or monthly billing cycles.
  • Upgrade subscriptions to the corresponding NCE product offerings, while maintaining quantities.
  • Transition any related base subscriptions along with their associated add-on SKUs simultaneously upon the base renewal date.
  • Allow a 7-day window to make subscription changes post-migration.
  • Issue new subscription IDs for the migrated NCE licenses

The set of subscriptions migratable to the new commerce experience includes exclusively those legacy offerings that have new commerce product SKUs enabled and prepared for migration.

Microsoft is set to introduce public sector product SKUs in its new commerce experience starting in March 2024, focusing on education, nonprofit, and government community cloud (GCC) customers. These products will be released in waves: 

  1. Wave 1: March 1, 2024
  2. Wave 2: March 1, 2024
  3. Wave 3: April 1, 2024
  4. Wave 4: May 1, 2024

There won’t be any changes in the qualification process for customers interested in the new PubSec SKUs. Those who were eligible for traditional legacy license-based PubSec offers will also qualify for the new commerce versions. The method customers acquired qualifications for purchasing education and nonprofit SKUs remains the same as before. Find more information here.
If you want to know more about non profit status, check out our blog How To Get Nonprofit Status on Microsoft.

Benefits of Microsoft’s New Commerce Experience for Charities

The Microsoft 365 New Commerce Experience is a positive development for charities and not-for-profits. It offers them a number of benefits that can help them to manage their IT costs better. Here are some great examples of how Microsoft’s NCE can benefit charities.

Cost-Effective IT Solutions for Charities

  • A charity with limited IT resources can save money by choosing a monthly subscription to Microsoft 365. This will give them access to the productivity tools they need without having to commit to a long-term contract.

Flexibility for Larger Charities

  • Larger charities with fluctuating user numbers can benefit from the flexibility. With NCE you can choose to commit to a one-year subscription term for their more stable users, or they can decide on a monthly subscription with no commitment for their unpredictable users.

Maximising IT Projects

  • Nonprofits planning to implement a new IT project can benefit from the early access to new features and services that are offered to Microsoft 365 NCE subscribers. This can help them to get the most out of their new project and to provide their beneficiaries with the best experience.

Find Out More New Commerce Experience For Not-For-Profits

In the meantime, stay tuned for more updates from Microsoft. Your IT partner should also be in contact nearer the release date, informing your organisation in more depth about the New Commerce Experience updates and making sure it’s implemented seamlessly.

If you have questions about the New Commerce Experience for your charity, our expert IT team is here to help. Get in touch at any time.

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