What Microsoft’s License Changes Mean for NFPs: Act Before July 2025

Microsoft is ending its donation program for two of its most popular NFP plans: Microsoft 365 Business Premium and Office 365 E1. From  July 1st 2025, these plans will no longer be offered as free (donated) licenses to eligible NFPs. 

If your organisation is currently using these donated licenses, you’ll need to take action soon. After the 1st of July 2025, you won’t be able to renew them. At that point, Microsoft will automatically cancel affected licenses at your next renewal date. 

Worse, if you haven’t moved your data or switched to a different license, you’ll lose access to that data, 90 days after cancellation. 

What’s Not Affected? 

Discounted Microsoft licenses and one-time-purchase software are not impacted.  

• Discounted Microsoft 365 plans will continue to be available. 
• On-premises software (such as Office 2024 or Office for Mac) can still be purchased outright and used indefinitely. 

What NFPs Should Do Now 

To avoid losing access to key data and services, NFP users are strongly advised to: 

• review which licenses you're currently using 
• back up your files and data 
• explore discounted NFP-friendly Microsoft license options 
• consult your IT provider or Microsoft partner for tailored guidance.  

NFPs are recommended to transition to a different license type well before your next renewal date to ensure a smooth handover and no data loss. 

Microsoft’s Position, and Why Timing Matters 

While Microsoft hasn’t shared a detailed explanation for ending the donation program, the company has acknowledged the impact on NFP organisations. In a statement to The NonProfit Times, a Microsoft spokesperson said: 

“We’re committed to making this transition smooth and are working closely with partners to provide clear guidance and hands-on support.” 

In the meantime, it’s essential to understand how your renewal timing affects your transition period. 

Annual renewals before 1 July 2025 will remain active for a full year. 

For example, if your annual license renews on 15 June 2025, it will stay valid until 14 June 2026. 

Monthly renewals, however, expire much sooner. 

If your monthly license renews on 15 June 2025, it will expire one month later, on 14 July 2025. 

If you're on a monthly contract, it may be wise to switch to an annual license before 1 July 2025. This will give you more time to plan, prepare, and transition to a new license, without risking service disruptions or data loss. 

What Are Your Options? 

If your organisation is currently using one of the soon-to-be-discontinued Microsoft donation licenses, you’ll need to transition to a different Microsoft plan before your renewal date. 

The silver lining is that there are still several, affordable paths forward. 

Here are some viable options you may like to consider: 

• Microsoft 365 Business Basic is still available as a donated license for eligible NFPs.
• A range of discounted Microsoft 365 and Office 365 plans remain available, offering up to 75% off retail pricing.
• If you prefer a one-time purchase, you can move to Office 2024 for Windows or Mac.

Need support with the transition? Our team can help you review your current licenses, explore the best-value options and plan a smooth switch. Book a consultation today to get started.