Microsoft Shutting Down Some Donated Licenses For Nonprofits

(image from https://microsoft.com)

Microsoft will no longer offer donated licenses for its Microsoft 365 Business Premium and Office 365 E1 plans beginning July 1, in a blow to nonprofits that have been working with the products via a granted use. Data could be lost if not saved elsewhere or switched to a different Microsoft product.

Not impacted by the change are all discounted Microsoft 365 or Office 365 plans and Microsoft’s “on-premises” products. On-Premises software packages are those you pay for only once and can use indefinitely. This includes Microsoft Office 2024 and Office for Mac.

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, according to Marnie Webb and Shruti Ramaswami of Tech Soup. They suggest users choose a different license type before the licenses are canceled. If you do not, you will lose access to any data associated with the canceled licenses after 90 days.

The NonProfit Times reached out to Microsoft for comment on the rationale for cancellation of the program. A spokesperson said an official would be made available to discuss the cancellation, but none was provided by deadline, instead sending a statement. It read, in part, “We’re committed to making this transition smooth and are working closely with partners to provide clear guidance and hands-on support.”

Any annual renewal that takes place before July 1, 2025 will be valid for a full year, after which you will need to switch to different licensing. For example, if your current contract renews on June 15, 2025, it will be valid through June 14, 2026, according to a social media post by Microsoft. 

Monthly renewals will expire much sooner. For example, your monthly contract renews on June 15, 2025, it will be valid through July 14, 2025. If you are on a monthly contract, you might want to switch your existing licenses to an annual contract before July 1. This will give you more time to choose an alternative license type, according to Webb and Ramaswami. 

If you have either of the soon to be expiring license types, you will soon need to move to a different Microsoft Cloud plan or find an alternative productivity solution.

There are options, according to Webb and Ramaswami. 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).  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% 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.