That means organizations currently using these grant-based licenses will need to transition to new plans or begin paying for their existing ones at renewal.
Here’s what you need to know — and what to do next:
Microsoft has retired the free grant-based licenses for both Microsoft 365 Business Premium and Office 365 E1. While your nonprofit may not feel an immediate impact, you will no longer be able to renew these free licenses moving forward.
If you were receiving these free licenses, you can continue using them until your next renewal date. But once your renewal cycle begins (anytime after July 1, 2025), your organization must:
This makes it essential to start planning now before your renewal comes due.
Microsoft is still committed to supporting nonprofits — but through a combination of free basic licenses and discounted advanced licenses:
Includes core services like cloud-based email, Teams, and online Office apps
Includes desktop apps, advanced security, and device management
For many nonprofits, this change could mean new expenses where there were none before. If your team relies heavily on Business Premium or E1, your IT budget may need to adjust.
The good news is that Microsoft’s discounted pricing still offers significant savings — up to 75% off standard costs. This means nonprofits can continue to access robust productivity and security tools at a fraction of what commercial organizations pay.
Microsoft emphasizes that these changes are meant to keep solutions affordable, innovative, and sustainable for the nonprofit sector. While free Business Premium and E1 licenses are gone, the combination of free Business Basic and discounted advanced plans is designed to ensure nonprofits can still access the tools they need.
If your organization hasn’t already planned for this shift, now is the time. At Nutmeg Technologies, we help nonprofits:
Contact Nutmeg Technologies today to review your Microsoft 365 setup and make sure your nonprofit is ready for this new licensing model. www.nutmegtech.com
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