Microsoft has announced a major licensing change that will affect nonprofits and charities across the globe. Starting 1st July 2025, Microsoft 365 Business Premium and Office 365 E1 grants will no longer renew. Any licences still active will expire at the next scheduled renewal date after this point.
If your organisation currently benefits from these free Microsoft 365 plans, it’s essential to start planning your transition now to avoid service disruption.
What’s Changing?
For years, Microsoft offered eligible charities and nonprofits free access to
Microsoft 365 Business Premium which includes full-featured Office apps, Teams, Intune, Azure AD, and advanced security
Office 365 E1 which offers cloud-based collaboration tools like Exchange, SharePoint, and Teams (web-only)
As of 1st July 2025
These grants will no longer be renewed
Licences will expire on the first renewal date on or after 1st July
Organisations must transition to paid nonprofit plans
Who Will This Impact?
This change applies to all nonprofit and charity organisations currently using the above grant licences. If you rely on these tools for day-to-day operations, team communication, or email hosting, you must act before your next renewal to avoid a sudden loss of service.
What Are Your Options?
Microsoft continues to offer discounted pricing for the nonprofit sector, including
Microsoft 365 Business Premium (Nonprofit Discounted)
A full-featured plan with robust security, productivity apps, Teams, and device management at a significantly reduced rate
Office 365 E1, E3, or E5 (Nonprofit)
These offer scalable options depending on the size and needs of your organisation
You can review pricing and eligibility on the Microsoft Nonprofit Portal
How to Prepare for the July 2025 Deadline
To ensure a smooth and disruption-free transition
Audit Your Current Setup
Understand how many users are on grant licences, what services they rely on, and when the next renewal is due
Plan a Transition
Decide whether to move all users to paid plans or adopt a hybrid model to reduce cost such as paid licences for staff and shared mailboxes or web-only access for volunteers
Review Budgeting
Adjust your IT budget to account for the cost of discounted licences beginning in 2025 or 2026, depending on your renewal cycle
Work With an IT Partner
Moving licences, reconfiguring services, and avoiding downtime requires technical knowledge and planning
Need Help Navigating the Changes?
At Cyber United, we specialise in supporting charities and nonprofits with their IT infrastructure and Microsoft 365 environments
We’ll help you
Audit your current Microsoft licences
Recommend cost-effective licensing options
Migrate to new plans with zero disruption
Provide ongoing support, training, and security guidance
Get in touch with Cyber United to discuss your options and prepare your organisation for the transition
Final Thoughts
While this change marks the end of an era for Microsoft’s free nonprofit plans, it also opens the door to more secure and modern cloud-based tools. With expert support from Cyber United, you can make the switch confidently and ensure your team continues working efficiently without interruption