Many nonprofits have relied on the Microsoft 365 Business Premium grant to access Microsoft 365 tools at no cost. Microsoft has now confirmed that this grant is being discontinued, which means affected organisations will need to move users to another Microsoft 365 nonprofit plan before their renewal date.
For charities, CICs, churches, community organisations and voluntary sector groups, this is an important change. Leaving it too late could lead to disruption, licence issues and access problems for staff and volunteers.
What is changing?
The legacy Microsoft 365 Business Premium grant is being discontinued. If your organisation currently uses this grant, the licences will expire on your next renewal date and will not renew automatically.
Microsoft has advised affected organisations to transition users to another Microsoft 365 offer for nonprofits before the current subscription ends. Microsoft will continue to support eligible nonprofits with other offers, including up to 300 granted Microsoft 365 Business Basic licences and discounts on selected Microsoft 365 nonprofit plans.
- Up to 300 granted Microsoft 365 Business Basic licences, where eligible
- Discounts of up to 75% on selected Microsoft 365 nonprofit plans
- Discounted access to Microsoft 365 Business Premium and Microsoft 365 Business Standard, where eligible
This means Business Premium is not disappearing completely, but the free grant version is being removed. Organisations that still need the extra features in Business Premium may need to move to a discounted paid nonprofit licence instead.
You can read Microsoft’s nonprofit licensing update here: Microsoft nonprofit updates.
Why this matters
Microsoft 365 Business Premium includes more than email and Office apps. Many organisations use it for device management, security, identity protection, Microsoft Defender, Intune and access controls.
Moving everyone straight to Business Basic may reduce cost, but it may not be the right choice for every user.
- Office staff may only need email, Teams, OneDrive, SharePoint and web-based Office apps
- Managers or finance users may need stronger security and desktop Office apps
- Staff using laptops with sensitive data may still need Business Premium
- Organisations with compliance or cyber insurance requirements may need to review their security setup carefully
The safest approach is to review users before changing licences.
What nonprofits should do now
1. Check your renewal date
Log in to the Microsoft 365 admin centre and confirm when your current Business Premium grant expires.
2. Review your users
Look at who currently has Business Premium and what they actually use. Not every user may need the same licence.
3. Choose the right replacement plan
Some users may be suitable for Microsoft 365 Business Basic. Others may still need Business Standard or Business Premium at nonprofit discounted pricing.
4. Check security and device management
If you are currently using Intune, Defender, conditional access or other security features, review the impact before changing licences.
5. Replace licences before cancelling the old subscription
Assign the new licences first, confirm users still have access, then cancel the discontinued subscription.
6. Back up and document key settings
Before making changes, review mailboxes, SharePoint sites, Teams, OneDrive, groups, devices and security policies.
Should you move to Business Basic?
Microsoft 365 Business Basic can be a good option for many nonprofits because it includes cloud-based tools such as Exchange email, Teams, OneDrive, SharePoint and web versions of Microsoft 365 apps.
However, Business Basic does not replace everything included in Business Premium. If your organisation depends on desktop Office apps, advanced security or device management, you may need a mixed licence setup.
- Business Basic for general users and volunteers
- Business Standard for users who need desktop Office apps
- Business Premium for users who need stronger security and managed devices
This can help reduce cost while keeping the right protection in place.
Final advice
Do not wait until the licence expiry date. Nonprofits should review their Microsoft 365 setup early, decide which users need which licences, and complete the transition before the current grant ends.
A planned transition is much safer than a rushed change, especially if your organisation depends on Microsoft 365 for email, files, Teams, SharePoint and day-to-day operations.
Need help reviewing your Microsoft 365 licences?
VividBlock supports nonprofits, charities, CICs and community organisations with Microsoft 365 setup, licensing, security, migration and user support.
- Review your current Microsoft 365 licences
- Identify which users need Business Basic, Standard or Premium
- Plan a safe transition before renewal
- Check security, devices, email, Teams, SharePoint and OneDrive
- Reduce unnecessary licence costs
- Avoid disruption for staff and volunteers
If your organisation has received a Microsoft 365 Business Premium grant discontinuation notice, now is the right time to review your options.
