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Microsoft is pulling free MS365 Business Premium licenses granted to nonprofits

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Nonprofits are in for a big change

Microsoft 365 Business app logos
(Image credit: Microsoft)
  • Microsoft 365 Business Premium and Office 365 E1 licenses for nonprofits are no longer free
  • 300 free licenses for Microsoft 365 Business Basic are on offer
  • Other subscriptions could see discounts of up to 75%

Microsoft has confirmed it will be ending free Microsoft 365 Business Premium and Office 365 E1 licenses for nonprofit organizations in what it's calling an effort to "streamline [its] grant offerings and simplify [its] grant portfolio."

In place of the deprecated scheme, the tech giant will offer a certain number of free licenses along with a hefty discount on other plans, including M365 Business Premium and Office 365 E1.

Those unwilling to benefit from the discount and begin paying a subscription fee will lose access to some of the features they may have become accustomed to with their free licenses.

Nonprofits will no longer receive some free Microsoft 365 subscription benefits

The company confirms that it will replace the scheme with one that enables nonprofits to receive up to 300 licenses for Microsoft 365 Business Basic. Eligible users will also be able to pick up discounts of to 75% on other subscriptions, including Microsoft 365 Business Premium and Office 365 E1.

If a nonprofit is small enough to be able to use the free 300 licenses for Business Basic, they will still lose access to desktop versions of the office apps and other features like Intune, therefore, they will be required to pay to reinstate those features.

Despite the hefty discount, some nonprofits may face unexpected costs, especially for features they must now pay for. Being that the nature of nonprofits is that finances can be limited, the company has been criticized over its short notice period.

Redmond added: "Our goal in Tech for Social Impact (TSI) is to ensure nonprofits can benefit from the industry leading solutions that are critical to ensuring the highest level of organizational security and productivity."

It's unclear what sort of cost savings the company hopes to realize from this readjustment or how many nonprofits will be affected.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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