Microsoft has announced a significant change that will impact nonprofit organizations across the globe. Microsoft will discontinue grant-based licensing for nonprofits.
This change undercuts many of nonprofits who already operate under tight budgets with limited IT resources. Stripping away access to secure, enterprise-grade collaboration tools introduces new financial and operational burdens that could negatively impact the communities these nonprofits serve.
For years, Microsoft supported nonprofits by offering free grant licenses for Microsoft 365 Business Premium and Microsoft 365 E1, giving these organizations powerful tools to manage communication, security, and collaboration. That ends on July 1, 2025.
Key points:
- Grant licenses for Microsoft 365 Business Premium and E1 will no longer be renewable
- All nonprofits currently using grant licenses must transition to paid, subscriptions
- Microsoft will offer discounts of up to 75% for nonprofit pricing
If your organization is currently using Microsoft 365 Business Premium or E1 under a grant, you must take action now to prepare for the July 1 cutoff.
Steps to take:
- Review your current licensing
- Evaluate actual feature usage to determine who needs Business Premium or E1 versus who could be moved to lower-cost alternatives
- Plan your transition strategy now to avoid service disruptions later
- Contact Colletti Tech for a free consultation — we’ll help you with options and how to reduce your licensing costs as much as possible.
Colletti Tech works with nonprofits nationwide to ensure they get the technology and support they need — without overspending. We offer:
- Nonprofit-focused Microsoft 365 audits and licensing reviews
- Transition planning from grant to discounted licenses
- Optimization of user roles and license tiers
- Ongoing support and training for our Managed IT clients
This policy change is a huge setback, but you don’t have to face it alone. Let us help you stay secure, compliant, and productive — without wasting budget.
Contact Colletti Tech and speak with a nonprofit license specialist today.