Microsoft 365 Donation Changes Are Coming: What Your Nonprofit Needs to Know (and Do) Now

Big tech changes often come with small print and in this case, that small print affects nonprofits around the world who rely on Microsoft 365 or Office 365 donated licenses to keep their operations running.

If your organization currently uses Microsoft’s donated cloud-based productivity tools through TechSoup (or a local TechSoup partner), you need to act soon.

Microsoft is making major changes to its nonprofit donation program, and some of the most commonly used donated plans will no longer be available. But don’t panic, in this post I break down what’s happening, what it means for your nonprofit, and how you can stay supported with minimal disruption.

What’s Changing with Microsoft 365 Donations?

Starting on or after July 1, 2025, Microsoft will discontinue donations for several popular Microsoft 365 and Office 365 plans that many nonprofits currently use, specifically:

• Microsoft 365 Business Premium (donated plan)
• Office 365 E1 (donated plan)

This means:

• You won’t be able to request these plans as new donations.
• If you’re currently using them, you’ll need to migrate to a different license.

While this may sound alarming, Microsoft will continue offering discounted pricing for nonprofits on these products, just not at a 100% donation level.

Why Is This Happening?

Microsoft is shifting its strategy from donation-based access to a more sustainable discount-first model. They’ve cited a desire to provide better long-term support and innovation, even for smaller organizations.

This is part of a broader industry trend: many tech providers are moving away from 100% donations toward deep discounts and subscription support. It’s not ideal, but it’s not unique to Microsoft either.

What Should My Nonprofit Do Next?

Whether you’re a team of 3 or 300, you must plan ahead. Here’s what you should do:

1. Check What Licenses You're Using Now

Log into your Microsoft Admin Center and look at which plans your organization currently holds. If you see any of the soon-to-be-discontinued donated licenses, take note.

2. Connect with Your Local TechSoup Partner

TechSoup operates globally through a network of regional partners. They are your best source for:

• Clarifying which plans will be impacted in your country
• Helping you migrate to the most cost-effective alternative
• Ensuring you don’t lose access to critical tools like Teams, Outlook, and OneDrive

👉 Use TechSoup’s Global Partner Directory to find your local partner.

3. Evaluate Your Needs

This might be a good time to review whether you're using all the tools available in your current plan. Are there services you don’t use? Are there collaboration features you need but don’t have? Your TechSoup partner can help match you with the right plan.

A Global Issue with Local Support

This change doesn’t just affect U.S.-based nonprofits. It impacts organizations in Canada, the UK, Australia, Kenya, India, Brazil - everywhere. But the support structure is global, too. TechSoup’s partner network spans 200+ countries and territories, and they know the local regulations, pricing, and requirements inside out.

Don’t Wait Until Your Access is Interrupted

The worst-case scenario is losing access to your data or productivity tools because your license expired without a plan in place. Avoid this disruption by taking proactive steps now.

In Summary

• Microsoft is retiring some donated Microsoft 365 and Office 365 plans for nonprofits starting July 1, 2025.
• Affected orgs must transition to discounted licenses: still affordable, but no longer free.
• Every nonprofit, no matter where you're based, should contact your local TechSoup partner as soon as possible to prepare for the switch.

Ready to take your nonprofit to the next level? Explore more tips, tools, and resources at NonprofitToolkits and start making an even greater impact today!