Microsoft has announced that it is to retire its long-running Microsoft 365 Business Premium grants for nonprofits.
This has the potential to be a significant shift in how charitable organisations access Microsoft’s productivity tools.
Business Premium Grants: What’s Changing?
Previously, eligible charities & nonprofits were able to receive up to 10 free Business Premium licences – giving access to desktop Office applications, cloud services such as SharePoint, and advanced security and device management features.
Under the new model, Microsoft will instead offer up to 300 free Microsoft 365 Business Basic licences. While this remains a generous offer, Business Basic is a lighter version of the suite — it includes web and mobile versions of Word, Excel, and PowerPoint – but not the full desktop apps.
For some organisations, this may not be sufficient for day-to-day operations, especially where staff need offline functionality or enhanced security controls.
The good news is that Microsoft is not walking away from the nonprofit sector. Instead, eligible charities can access Microsoft 365 Business Premium with up to 75% off standard pricing.
For most, this will come to around £4.20 per user per month, which remains affordable compared to equivalent business licences.
What Happens If You Do Nothing?
If your organisation takes no action before the renewal date, your granted Business Premium licences will simply expire. There is a 30-day grace period where access remains active, followed by up to 60 days during which data can be recovered — but no users can access services unless a new subscription is applied.
After that window, your organisation’s Microsoft 365 environment, including emails, files, and SharePoint content, may be permanently deleted.
So this is not just an administrative update — it’s a critical operational issue that could impact everything from day-to-day productivity to compliance with data retention policies.
Your Next Steps
The first thing to do is check your Microsoft 365 renewal date. If it’s shortly after 1st July 2025, time is of the essence. Then, assess your current licence usage: how many users rely on Business Premium features such as desktop apps or advanced security?
If your team can work effectively using only the online versions, the free Business Basic offer could be a strong fit. However, most organisations will likely need to transition to discounted Business Premium licences to maintain business continuity.
Need Help Making the Transition?
Navigating this change to Microsoft 365 Business Premium grants doesn’t have to be a headache. But budgeting is key.
Plan ahead and factor in licence costs so there are no surprises later in the financial year. And finally, back up any critical data before your current subscription ends, just in case.
As a Microsoft partner, Akita is here to assist charities and nonprofits to assess licensing and wider IT setups, compare options, and handle the migration smoothly, with no disruption to your users or data.
To discuss your options and start planning your move, contact us today:
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