Microsoft has just made a decision that could transform the daily lives of thousands of nonprofit organizations around the world.
Starting July 1, 2025 , Microsoft 365 Business Premium and Office 365 E1 CSP and Web Direct grant offerings will no longer be available . This decision is intended to simplify the grant portfolio and offer solutions that are more tailored to the needs of organizations.
Microsoft is now offering up to 300 Microsoft 365 Business Basic licenses and discounts of up to 75% on many Microsoft 365 plans, including Microsoft 365 Business Premium and Office 365 E1. These changes only affect subsidized plans, not paid licenses.
For nonprofit organizations currently using these grants, the changes will be applied upon renewal of their subscriptions after July 1st .
What are the options for organizations from July 1 , 2025?
Option 1 :
Organizations with fewer than 300 active users can upgrade to Microsoft 365 Business Basic. Organizations with more than 300 users can sign an Enterprise Agreement (EA) with Microsoft and receive up to 2,000 Office 365 E1 seats.
For nonprofit organizations looking to improve their productivity and collaboration, Microsoft 365 Business Basic offers a cost-effective solution with minimal operating costs. Eligible organizations can access Microsoft 365 Business Basic for free for up to 300 users.
Microsoft 365 Business Basic includes web and mobile versions of Office apps (Word, Excel, PowerPoint, Outlook), personalized business email, and 1 TB of OneDrive cloud storage per user. The plan also offers collaboration tools such as Microsoft Teams, SharePoint, and Bookings.
Office 365 E1 and Microsoft 365 Business Basic have the same basic productivity features, with the main difference being that Microsoft 365 Business Basic has a 300-seat limit.
Option 2 :
Organizations can also purchase seats with discounts of up to 75% on many Microsoft 365 nonprofit offerings. For example:
Microsoft 365 Business Premium: $7.50 CAD user/month, paid annually (Annual Subscription)
Microsoft 365 Business Standard: $4.10 CAD user/month, paid annually (Annual Subscription)
Office 365 E1 (without Teams) – $10.50 CAD user/month, paid annually (Annual Subscription)
Microsoft 365 Business Premium offers nonprofit organizations a comprehensive suite of tools including advanced security, compliance, identity, and management features at a reduced cost. It also includes Microsoft 365 desktop apps and all the cloud services included in the Business Basic plan, including Teams, email, and OneDrive cloud storage. Eligible organizations receive Microsoft 365 licenses at a 75% discount.
How can we help customers with this transition?
Partners are encouraged to share with their customers the various Microsoft 365 subsidy and discount offers available. This is also an ideal time to discuss the security value of Microsoft 365 licensing.
Here are some recommended steps:
- Take inventory of licenses used and identify essential users.
- Evaluate new Microsoft offerings for NGOs and compare costs.
- Help the customer choose licenses based on each user’s needs
- Prepare for a gradual transition before the deadline of July 1, 2025
Important to consider:
Customers will have a 30-day grace period to access their subscriptions after renewal.
To ensure a smooth transition and avoid any service interruptions, customers are strongly encouraged to renew their licenses within the specified timeframe. After 60 days of losing access, all data associated with the account will be permanently deleted, with no possibility of recovery.
The ITCloud team remains fully committed to supporting its partners throughout the process. Whether answering questions, clarifying steps, or providing technical support, our specialists are available to assist you quickly and efficiently. Don’t hesitate to contact us: we’re here to ensure a smooth and hassle-free experience.