This May, Microsoft quietly announced it was ending a long-running program that provided about 400,000 nonprofits (according to Microsoft) free access to its software products Microsoft 365 Business Premium and Office 365 E1, which include such workplace staples as Microsoft Word and Excel.
In a statement to NPQ, a Microsoft spokesperson wrote:
As part of a recent update to our nonprofit offers, we are retiring the Microsoft 365 Business Premium and Office 365 E1 grant offers. Existing grant recipients can continue service through their next renewal on or after July 1, 2025. When they renew, eligible nonprofits will have several options to maintain access to secure, modern collaboration tools—including up to 300 free Microsoft 365 Business Basic licenses and up to a 75% discount on Microsoft 365 Business Premium and Office 365 E1. We’re committed to making this transition smooth and are working closely with partners to provide clear guidance and hands-on support.
The July 1 renewal deadline means many of the nearly half-million nonprofits who have benefited from the program have about two months to either find new room in their budgets to pay for the products—this at a time of unprecedented crisis for the sector including threatened and actual cuts to federal funding; or to find alternatives.
“We are retiring the Microsoft 365 Business Premium and Office 365 E1 grant offers.”
The sudden deadline creates a potential secondary crisis for nonprofits unable to find ways to pay for the products in time: The possibility of losing untold amounts of company data and other work products dependent on the Microsoft software.
The news came as a shock to George Weiner, founder and CEO of Whole Wale, a marketing and analytics company focused on helping nonprofits. Weiner shared his reaction on LinkedIn, noting:
Microsoft just gave 400,000 nonprofits two months notice.
That’s how long they have before their free Microsoft 365 Granted licenses disappear.
After 10+ years of providing this cornerstone tech support.
This isn’t a transition.
It’s a rug pull.
Speaking with NPQ, Weiner said that for thousands of nonprofits, especially the many already existing on shoestring budgets, the Microsoft grant program was a lifeline that much of the sector had come to depend upon to be able to perform basic work tasks.
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On its website, Whole Whale estimates the annual cost of the software to a 20-person nonprofit to be about $1,320 annually. The post notes: “Many small nonprofits operate with annual budgets under $500,000, with some as low as $50,000-$100,000. Adding $1,320 in unexpected technology costs represents 1-2% of their entire operating budget.”
“This isn’t a transition. It’s a rug-pull.”
Another risk to nonprofits is simply missing the news of the program being sunsetted.
“If you make the mistake of not registering or ignoring this, and you wait like 60 days after that final notice, you lose your data for these other tools,” Weiner told NPQ. “We assume the thing is just going to run. It’s been around since 2013. This is, like, part of the fabric of the nonprofit playbook.”
