Office 365 E1 and Microsoft 365 Business Premium Grants are Being Discontinued.
On May 14, 2025, Microsoft announced a significant change to its cloud donation program for nonprofits.
As of July 1, 2025, Microsoft will be retiring its free donated licencing programs for Microsoft 365 Business Premium and Office 365 E1 plans. If you have either of these license types, here’s what you need to know.
Which Products Are Affected?
Beginning July 1, 2025, Microsoft will no longer offer free licenses for these cloud subscriptions:
- Donated Microsoft 365 Business Premium plans
- Donated Office 365 E1 plans
The following products are not impacted by this change:
- All discounted (up to 75%) Microsoft 365 nonprofit offers like Microsoft 365 Business Premium or Office 365 E1 plans
- Up to 300 granted Microsoft 365 Basic licenses
- Microsoft’s “on-premises” products. These are software packages that you pay for only once and can use indefinitely. This includes Microsoft Office 2024 and Office for Mac.
What You Can Expect.
If your nonprofit is using either of the discontinued license types, here’s what to expect:
- Affected licenses cannot be renewed on or after July 1, 2025. Upon your next renewal, the affected licences are not available. You should choose a different license type before your licenses are discontinued.
- Any annual renewal that takes place before July 1, 2025, will be valid for a full year, after which your non-profit will need to switch to different licensing. For example, if your current contract renews on June 5, 2025, it will be valid through June 4, 2026.
- On the other hand, if your current license term expires on July 15, 2025, any affected licenses will be be discontinued on that date.
We strongly recommend migrating to a different license type before Microsoft discontinues the affected licenses, otherwise:
- Microsoft will not automatically move your licenses. You will need to decide how to proceed and make licensing changes upon renewal.
- Without switching to a different license type, once the licence is discontinued, any data associated with the affected licenses becomes unavailable after 90 days.
Key Date to Remember
July 1, 2025 – Microsoft begins discontinuing grant-based nonprofit licenses for Microsoft 365 Business Premium and Office 365 E1. The change takes effect at your next renewal.
Let’s Get Ahead of This Together.
We are well aware that these Microsoft announcements come at a time when many nonprofits are feeling the financial squeeze. Changes like this are yet another challenge and can be disruptive. Please connect with us if you have any questions about transitioning your licences or require licencing support. We will be by your side to help you through.
