Microsoft retired the free Business Premium and Office 365 E1 grants in July 2025. Here’s what changed, what discounts remain available, and how to decide whether Microsoft 365 Business Basic is enough for your charity at renewal.
Microsoft retired its free Microsoft 365 Business Premium and Office 365 E1 grants for charities in July 2025. If your organisation previously relied on those licences, your next renewal will likely involve choosing between discounted Microsoft 365 licences rather than continuing with free grants. For many charities, the key decision is whether Microsoft 365 Business Basic is sufficient, or whether some users still need Business Premium.
The right answer depends on how your organisation works, the security controls you require and which Microsoft features your teams actually use. Before your next renewal, it’s worth understanding what changed, what licensing options remain available and how to avoid paying for licences you don’t need—or removing capabilities you do.
For many years, eligible non-profits could access free Microsoft 365 Business Premium and Office 365 E1 licences through Microsoft’s nonprofit programme.
These grants enabled charities to benefit from productivity, collaboration and security tools without the full commercial cost of licensing. As a result, many organisations built their Microsoft environment around the licences available through the programme.
In July 2025, Microsoft retired those free grants.
While Microsoft’s commitment to supporting non-profits remains in place, organisations that previously relied on free Business Premium or Office 365 E1 licences now need to evaluate alternative licensing options and budget accordingly. Eligible organisations can still access Microsoft’s nonprofit programme and associated discounts.
For some charities, the financial impact has been relatively modest. For others, particularly those with larger user bases, the change has prompted a more fundamental review of their Microsoft estate.
The retirement of the grants did not bring an end to Microsoft’s nonprofit programme.
Eligible charities can still access discounted Microsoft licences through the nonprofit scheme. However, instead of relying on free allocations of Business Premium or Office 365 E1, organisations now need to determine which licences offer the best balance of functionality, security and cost.
This has shifted the conversation from “What licences do we get?” to “What licences do we actually need?”
That distinction matters.
The most cost-effective licensing strategy is rarely the one that simply selects the cheapest option available. It’s the one that gives users the capabilities they need without paying for functionality that delivers little value.
For many charities, the key decision at renewal is whether Microsoft 365 Business Basic provides enough functionality, or whether some users should remain on higher-tier licences. Understanding how your teams use Microsoft 365 today is often more important than focusing solely on licence costs.
For charities whose staff spend most of their time communicating, collaborating and sharing documents online, this may appear to be a sensible alternative.
In some cases, it is.
But before moving everyone onto Business Basic, it’s worth taking a closer look at how people actually work.
Business Basic is often a good fit when users primarily need communication and collaboration tools.
You may find Business Basic is sufficient if:
Renewal decisions become more complicated when organisations rely on capabilities that go beyond basic communication and collaboration.
Before moving users away from Business Premium, consider the following.
One of the most effective responses to Microsoft’s nonprofit licence changes is to stop thinking about licensing as a single organisation-wide decision.
Many charities benefit from matching licences to user needs.
For example:
Rather than making decisions based solely on cost, use your renewal as an opportunity to assess how Microsoft 365 supports your organisation.
A practical review should include:
The retirement of Microsoft’s free Business Premium and Office 365 E1 grants has made licence reviews more important than ever.
Good practice looks like understanding how your organisation works, identifying the capabilities different teams need and selecting licences accordingly. For some charities, Business Basic will be sufficient for most users. For others, a combination of licence types will provide better value and stronger long-term outcomes.
If you’re approaching renewal and are unsure which licences are right for your organisation, start with a structured review of your current Microsoft environment. Understanding what you use today is the best foundation for making informed decisions about tomorrow.
ForGood.Tech works exclusively with non-profits and offers a free Microsoft licensing review to help charities understand the impact of Microsoft’s nonprofit licence changes, evaluate renewal options and optimise licensing costs.
Need help navigating Microsoft’s nonprofit licence changes? Book a free Microsoft licensing review to understand your options, identify potential cost savings and make informed renewal decisions.
Get in touchMicrosoft retired the free Microsoft 365 Business Premium and Office 365 E1 grants for eligible non-profits. Charities can still access Microsoft’s nonprofit programme and discounted licensing offers, but organisations that previously relied on these free grants may now need to pay for licences that were previously provided at no cost.
Yes. Microsoft continues to provide discounted licensing and other benefits through its nonprofit programme for eligible organisations. However, the specific grants that previously provided free Business Premium and Office 365 E1 licences were retired in July 2025.
Business Basic provides core productivity and collaboration tools, including email, Teams, SharePoint and OneDrive. Business Premium includes additional capabilities designed to help organisations manage devices, strengthen security and support more advanced administration requirements. The right choice depends on your charity’s operational and security needs.
Not necessarily. While Business Basic may be suitable for some users, many charities find that different teams have different requirements. Finance, fundraising and leadership teams may benefit from capabilities that are not included in lower-tier licences. Reviewing user needs before renewal is usually the best approach.
Start by reviewing how people use Microsoft 365 today. Consider which applications they rely on, how they access organisational data, and whether they need additional security or management features. Many organisations discover that a mixed licensing approach provides better value than assigning the same licence to every user.