Microsoft to End Free Premium Office 365 Licences for Non-Profits
Microsoft has announced that, from 1st July 2025, it will discontinue its free Microsoft 365 Business Premium and Office 365 E1 licences for eligible non-profits. If your organisation currently benefits from this grant, it’s important to plan ahead to avoid any disruption or unexpected charges.
What’s Changing?
If you currently have 10 free Business Premium or E1 licences, these will expire on your renewal date after 1st July 2025. At that point, they will automatically switch to paid licences – Business Premium, for example, will be charged at £4.20 per user per month.
What’s Still Free?
Not all free licensing is going away. Microsoft will continue to offer:
- Up to 300 Microsoft 365 Business Basic licences free of charge
(Note: These do not include desktop versions of Office apps like Word and Excel) - Up to 2,000 free Office 365 E1 licences if you’re on an Enterprise Agreement
- Discounts of up to 75% on paid licences like Business Premium or Office 365 E1
Key Points to Be Aware Of
- Desktop Office apps (e.g. Word, Excel, Outlook) are no longer free — you’ll need a paid plan to keep them.
- Business Standard includes the desktop Office apps, so may be a good fit for you.
- Business Basic (the free option) is web-based only and lacks key features like Intune and device management.
- If no action is taken, your data will remain accessible for 90 days after licence expiry.
Need Help Navigating This?
We understand these changes may create uncertainty — especially for smaller charities or those with limited IT budgets. We can help you:
- Review your current Microsoft 365 setup
- Decide whether to move to free Business Basic licences
- Choose the most cost-effective path to retain desktop apps and other features
You don’t have to work it out alone. Contact us using this form and we’ll help you create the right licensing plan for your organisation.