Microsoft 365 for nonprofits pricing
Eligible nonprofits get Microsoft 365 either free or at a steep discount. The program changed recently, so some older advice is out of date. Here is where it stands now.
What changed, and why old guides mislead
For years the headline offer was a grant of up to 10 free Microsoft 365 Business Premium licenses. That grant was discontinued in mid-2025. Articles written before then still describe it, which is why nonprofits get confused.
The program now leans on deep discounts plus a free tier for the most basic plan. The value is still very real; it is just structured differently.
What you can get now
| Plan | Nonprofit offer | Notes |
|---|---|---|
| Business Basic | Free for up to 300 users | Web and mobile apps, email, Teams, 1 TB OneDrive |
| Business Premium | About 75% off, roughly $5.50 / user / month | Adds desktop apps and full security |
| Office 365 E1 | Discounted | Enterprise email and services without desktop apps |
| Enterprise plans (E3, E5) | Discounted | For larger nonprofits that need enterprise features |
List prices are estimates in USD on an annual commitment and change over time. Confirm current pricing with your Microsoft partner. Nonprofit offers and eligibility are set by Microsoft and can change.
How eligibility works
Microsoft grants and discounts go to organizations that hold recognized nonprofit status, such as a 501(c)(3) in the United States, and are usually verified through TechSoup. Public agencies, schools, and healthcare organizations often fall under separate programs. Once verified, you register your organization for nonprofit offers and then buy or assign the discounted plans.
Which plan most nonprofits should pick
Free Business Basic is a genuinely good starting point for volunteers, part-time staff, and anyone who works in a browser. For core staff who handle donor data, grants, and finances, the discounted Business Premium is the better choice, because it adds the desktop apps and, more importantly, the security layer that protects sensitive information. The security is the reason not to default everyone to the free plan.
Answer four questions and get your exact licenseFree. No sign-up. Real prices and when to upgrade.Common questions
Is Microsoft 365 free for nonprofits?
Microsoft 365 Business Basic is available free for up to 300 users to eligible nonprofits. Other plans, including Business Premium, are offered at a steep discount rather than free.
What happened to the free nonprofit grant?
The grant of up to 10 free Business Premium licenses was discontinued in mid-2025. It was replaced by free Business Basic for up to 300 users and discounted pricing on Business Premium and enterprise plans.
How much is Business Premium for nonprofits?
Eligible nonprofits get Business Premium at about 75 percent off, roughly $5.50 per user per month, compared with about $22 commercially. Confirm current pricing with your Microsoft partner.
How do we qualify for nonprofit pricing?
You need recognized nonprofit status, such as a 501(c)(3) in the United States, usually verified through TechSoup. After verification you register for Microsoft nonprofit offers and assign the discounted plans.