Microsoft to End Business Premium Grants in July 2025

From 1 July 2025, Microsoft will discontinue its Business Premium and Office 365 E1 grants for nonprofits. If your organisation benefits from these grants, we’ve summarised what’s changing, how it impacts your licence and the next steps you need to take.

How will this impact your licence?

This change affects grant-based licences only; paid nonprofit licences remain available and unaffected. Any organisation using the free Microsoft 365 Business Premium or Office 365 E1 grant licences will lose access to these plans from their next renewal date after 1 July.

• Microsoft 365 Business Premium (grant version) will be retired.
• Office 365 E1 (grant version) will also be discontinued, but still accessible via Enterprise Agreements for larger nonprofits.
• Business Basic will become the default free grant offer (up to 300 users), but it does not include key security or desktop app features.

It’s important to note that the licensing model will not change. If you prefer, your organisation can continue with monthly payments.

What are your options for a new licence?

Microsoft has introduced several options tailored to different nonprofit needs:

1. Microsoft 365 Business Premium (Discounted)

1. Available at up to 75% off normal pricing.
2. Full desktop Office apps.
3. Microsoft Defender, Intune, identity and compliance features.
4. Compatible with Microsoft Copilot and Power Platform integrations.

2. Office 365 E1 (Enterprise Agreement Only)

1. For organisations with over 300 users.
2. Offers up to 2,000 seats.
3. Available only through the Enterprise Agreement channel.

3. Microsoft 365 F1 (Discounted)

1. Protects users and data with baseline security tools suited for frontline roles
2. Enables messaging, email, file sharing and team collaboration through core Microsoft 365 apps
3. AI-assisted writing, grounded responses from the web, and access to basic agents for insights
4. Option to purchase Microsoft 365 Copilot separately

4. Microsoft 365 F3 (Discounted)

1. Includes all the features of Microsoft 365 F1
2. Full app access with secure sign-on and enhanced tools
3. Build custom apps and automate workflows
4. Advanced threat protection and access control

You can also mix and match licences across users. For instance, some users might only need Microsoft 365 F1, while others need the additional capabilities in Microsoft 365 F3. We don’t recommend using Microsoft Business Basic as it does not have adequate security features. 

What actions do you need to take?

1. Audit your current licensing: Identify how many users are on grant-based Business Premium or Office 365 E1. Determine the features used and classify users based on their needs.
2. Know your renewal date: The changes only apply to your next renewal date after 1 July 2025. You will need to confirm your renewal date to plan the transition timeline.
3. Log in to the Microsoft 365 Admin Centre: Replace expiring licences with either Business Basic (grant) or another nonprofit offer. Be sure to verify licence availability, assign new licences to users, and cancel expiring grant subscriptions.
4. Backup important data: Ensure Teams recordings, Stream videos, and any data tied to discontinued features are saved or migrated. These assets could be deleted post-expiry.
5. Engage support early: Consider chatting with Rodin’s team for an assessment and guidance on your license structure moving forward. Rodin can help you replace expiring licenses, assign new licenses to users and cancel expiring grant subscriptions.

What happens if I don’t update my licence?

If your licence expires without renewal or migration, your organisation enters a three-stage window:

• 30-day grace period where access remains intact.
• 60-day post-expiry window to activate a new plan.
• After 90 days, Microsoft reserves the right to permanently delete all data associated with the tenant.

Microsoft will not auto-renew or downgrade your plan. Admins must log into the Microsoft 365 Admin Centre and apply changes.

Rodin is here to support your not-for-profit

Whether you need help assessing your current licences, choosing the right Microsoft 365 plan or managing data migration, our team is ready to assist. We understand the unique needs of not-for-profits and will work with you to minimise disruption, maintain security, and maximise value. If you require guidance or hands-on support, get in touch with our team.