On May 14, 2025, Microsoft announced a significant change to its cloud donation program for nonprofits.
Beginning July 1, 2025, Microsoft will no longer offer donated licenses for its Microsoft 365 Business Premium and Office 365 E1 plans. If you have either of these license types, you will soon need to move to a different Microsoft Cloud plan or find an alternative productivity solution. Here's what you need to know.
Which Products Are Affected?
Beginning July 1, 2025, Microsoft will no longer offer licenses for these cloud subscriptions:
- Donated Microsoft 365 Business Premium plans
- Donated Office 365 E1 plans
The following products are not impacted by this change:
- All discounted Microsoft 365 or Office 365 plans
- Donated Microsoft 365 Basic plans
- Microsoft's "on-premises" products. These are software packages that you pay for only once and can use indefinitely. This includes Microsoft Office 2024 and Office for Mac.
What You Can Expect
If your nonprofit is using either of these license types, here’s what to expect:
- You will not be able to renew affected licenses on or after July 1, 2025. Upon your next renewal, any affected licenses will be automatically canceled by Microsoft. You should choose a different license type before your licenses are canceled. If you do not, you will lose access to any data associated with the canceled licenses after 90 days.
- Any annual renewal that takes place before July 1, 2025, will be valid for a full year, after which your nonprofit will need to switch to different licensing. For example, if your current contract renews on June 5, 2025, it will be valid through June 4, 2026.
On the other hand, if your current license term expires on July 15, 2025, any affected licenses will be canceled on that date.
We strongly recommend that you migrate to a different license type before Microsoft cancels your affected licenses. If you do not switch to a different license type, you will lose any data associated with the affected licenses 90 days after they are canceled.
Additionally, Microsoft will not automatically move your licenses. You will need to decide how to proceed and make licensing changes upon renewal.
Check Your Licenses and Consider Your Options
First, it's a good idea to check which licenses your organization has and to see when they expire. To do so, follow these instructions (PDF).
Next, learn about your options. There are various other Microsoft 365 and Office 365 plans available, including Microsoft 365 Business Basic, which is still available as a donation. Discounted Microsoft 365 and Office 365 plans still represent a savings of up to 75 percent compared to retail pricing.
If you prefer, you can move to Office 2024, which you would purchase once and can use indefinitely. TechSoup offers Office 2024 for both Windows and Mac. You may also want to consider an alternative solution like Google Workspace.
To learn about your options and how to transition your licenses, read this support article.
We're Here to Support You
We know that these changes will have a major impact on your organization. Please know that we are committed to supporting you and will keep you informed as we learn more.
In the meantime, please join our webinar on the topic, which takes place Thursday, May 22, at 11:30 a.m. Pacific. We will discuss what's changing, as well as go over your options going forward.
Thumbnail image: Shutterstock
