Important Microsoft Licensing Changes for Nonprofits – What You Need to Know Before July 2025

If your nonprofit or charity relies on Microsoft tools, there are some important licensing changes on the horizon that could impact how you budget, plan and manage your IT setup.

Starting July 1, 2025, Microsoft is introducing significant changes to its nonprofit licensing programme – including the removal of key grant-funded plans and increased pricing on some services.

Whether you’re a small community organisation or a large charitable trust, now is the time to review your current setup and plan for what’s next.

What’s changing?

• End of grant offers: Microsoft will no longer offer the Microsoft 365 Business Premium and Office 365 E1 grants. These free plans have been a staple for many nonprofit organisations and their removal will require affected users to move to alternative licensing options – potentially incurring new costs.
• Price increases: Licences for Teams Phone and Power BI will see price increases. These changes will apply to new licences added after July 1, 2025 or when existing agreements are renewed.

What does this mean for you?

The loss of the Microsoft 365 Business Premium and Office 365 E1 grants could mean higher operating costs for many nonprofits. Although Microsoft will continue to offer discounted plans, these may still require budget adjustments – especially for organisations with multiple users.

Unsure what to do next? Let’s take a look…

Review your current licences

Take stock of your existing Microsoft licences. Which are grant-funded? Which may be subject to price changes?

Plan ahead

Begin budgeting and forecasting for the increased costs. Explore which discounted alternatives might be suitable for your organisation.

Get support

Speak with your IT partner, Microsoft representative or trusted consultant. They can help you identify the most cost-effective options and ensure a smooth transition.

Now’s the time to act…

These changes serve as a reminder that even essential tech services for nonprofits are subject to market shifts. But with the right planning and advice, your organisation can adapt and continue to make the most of Microsoft’s powerful tools.

If you’d like help reviewing your setup or planning your next steps, reach out to Right Digital Solutions today – we’re standing by to lend a helping hand.