Free Microsoft Nonprofit Licenses to End in 2025
From July 2025, Microsoft will implement major changes to its nonprofit licensing programme.
This change is impacting thousands of charities and nonprofit organisations that currently rely on donation-based licences.
If your organisation is using the 10 free Microsoft 365 Business Premium Licence donations or Office 365 E1 nonprofit licences, it’s important to review what’s changing and what action you may need to take.
Microsoft 365 Changes Coming in 2025
Microsoft recently announced the retirement of donation-based Microsoft nonprofit licenses, including:
- Microsoft 365 Business Premium for nonprofits
- Office 365 E1 grant licences
These changes take effect from 1 July 2025, and apply only to the free donation licenses. If your subscription renews after that date, the free licences will expire and will no longer be available at renewal.
For example:
- If your organisation renews in June 2025, you’ll retain the licence for 12 more months
- If your renewal falls in October 2025, the grant licence will expire on that date and will need to be replaced with a new plan
Microsoft has confirmed that this update is part of a wider effort to streamline offerings and promote more secure, cloud-ready systems for nonprofits.
What to Do if Your Microsoft Charity Licence Is Expiring
While this may come as disappointing news, Microsoft is still offering generous support for nonprofits through discounted licensing options:
- Microsoft 365 Business Basic – free for up to 300 users
- Microsoft 365 Business Premium for nonprofits – available at a significant nonprofit discount
- Office 365 E1 – available through Enterprise Agreements (up to 2,000 free seats for qualifying organisations)
These paid options still deliver excellent value and full access to the Microsoft 365 nonprofit environment, including cloud services, Microsoft Teams, and robust cyber security features.
You can also explore the latest nonprofit offers directly on Microsoft’s official site: https://www.microsoft.com/en-us/nonprofits/offers-for-nonprofits
Microsoft Licensing Changes: July 2025 and Beyond
These are the key timelines and actions to keep in mind:
- From 1st July 2025: Microsoft will no longer offer new or renewed Microsoft donation licences for Business Premium or Office 365 E1
- Your next renewal: Determines when your grant licence expires — not all will expire immediately in July 2025
- Microsoft notifications: You’ll receive reminders at 90, 60, and 30 days before your licence is deactivated
- Data retention: You’ll have 30 days of full access after expiration, followed by a 60-day grace period to transition or back up data
These rules apply across Microsoft 365 nonprofit accounts and are in line with Microsoft’s standard retention policies.
How CYAN Is Supporting UK Charities
At CYAN, we understand how important the Microsoft donation licences have been in helping charities minimise overheads and focus on delivering their services.
We’re already reaching out to our nonprofit customers to help plan for this transition. Our team is here to:
- Review your current licensing status
- Advise on the best Microsoft 365 nonprofit solution for your needs
- Manage your licence transition smoothly to avoid disruption
- Ensure your systems stay compliant, secure, and scalable
We offer guidance around Microsoft 365 licensing for UK charities, including advice on security, data protection, and remote collaboration tools.
Summary: What This Means for You
- The Microsoft nonprofit licenses programme is changing. The 10 Business Premium donation and E1 will no longer be renewed from July 2025
- Paid nonprofit licences are still available at a highly discounted rate
- Organisations should start planning now to ensure a smooth transition
- CYAN will continue to support our charity and nonprofit customers through every step of the change
Navigating Microsoft’s nonprofit licensing changes? Let’s make it easier.
If you’re a UK charity or nonprofit unsure how these updates will affect your organisation, we’re here to help.
At CYAN, we specialise in managed IT support for purpose-driven organisations — including full support with Microsoft 365 licensing, migrations, and long-term planning.
Book a no-obligation call with our team to review your setup and explore your best options moving forward.
👉 Get in touch and let’s take the stress out of switching.
