From 1 July 2025, Microsoft will retire two widely used Microsoft 365 licence grants used by non-profits. If your organisation currently relies on them, it’s essential to prepare to avoid disruption.
As a Microsoft Partner with extensive experience supporting non-profits, Texaport has created a guide to help you navigate the transition with clarity, confidence, and minimal impact.
Table of contents
- What's changing and when?
- What will stay the same?
- Why Business Premium is worth the investment
- Value and security in Microsoft licensing
- How to prepare for these changes
- Why work with Texaport?
What's changing and when?
Microsoft is going to retire its two free licence grants, which are currently used by thousands of non-profits across the UK:
- Microsoft 365 Business Premium (10-licence grant)
- Office 365 E1 (10-licence grant)
These changes apply to any non-profit using the above grants via a Cloud Solution Provider (CSP) or directly from Microsoft. The licences will remain active until your organisation’s next renewal date after 1 July 2025. At that point, they will expire and must be replaced or transitioned to a paid plan.
If your organisation renews its Microsoft licensing before 1 July 2025, you’ll be able to extend your 10-licence grant for an additional year, delaying any immediate cost impact.
However, if your renewal falls on or after 1 July 2025, the free grant cannot be renewed and will need to be replaced with a paid plan at that time.
Data retention for organisations transitioning to new offers:
- You'll retain full access to your subscriptions for 30 days after the renewal date
- After that period, you will lose access to your licence and have 60 days to activate before your data is deleted
What will stay the same?
Even though these changes seem costly, there are still many discounts and grants available to non-profits, such as:
- 75% non-profit discount on Microsoft 365 Business Premium
- Up to 300 free Microsoft Business Basic Licences
- Discounted rates for Office 365 E1 and Business Standard
These offers are not affected by the July 2025 update and remain available through approved partners.
Your options explained
We’ve outlined the most common options, including estimated UK non-profit pricing as of June 2025:
| Plan |
Non-profit pricing |
Key features |
| Microsoft 365 Business Basic |
Free (Up to 300 users) |
Email, Teams, SharePoint, Office (web/mobile only) |
| Office 365 E1 |
£2.02 per user/month |
Similar to Basic, more flexible licensing |
| Microsoft 365 Business Standard |
£2.42 per user/month |
Full Office apps (desktop, web, mobile), Teams, Outlook, SharePoint, OneDrive |
| Microsoft 365 Business Premium |
£4.41 per user/month |
Full Office apps, advanced security, device management, Copilot access |
UK pricing estimated as of June 2025. Microsoft's final figures may vary slightly.
Why Business Premium is worth the investment
While Business Basic remains a strong free option, it lacks the advanced tools many non-profits need for securing sensitive data or managing hybrid workforces. This is where Microsoft Business Premium delivers significant value.
Microsoft Business Premium includes:
- Conditional Access: Advanced identity and access management
- Microsoft Defender for Endpoint: Protection against viruses and phishing attacks
- Microsoft Intune: Protect data and access on devices
- Microsoft Purview: Protect data with classification and labelling
- Advanced Email Security: Protect against threats in attachments & links
- Advanced Information Rights Management: Restrict access to sensitive business information
- Policy-based device security: Protect data on company & employee devices
- Control data security across devices: Keep data within approved apps across devices
- Secure data on lost or stolen devices: Remotely remove data from lost or stolen devices
Together, these features not only ensure your non-profit is as productive as possible, no matter where and how your employees work, but also help you achieve and demonstrate the highest standards of compliance, even in highly regulated sectors.
Value and security in Microsoft licensing
We understand that many non-profits operate on limited budgets, especially when sudden licensing changes introduce unexpected costs. While Microsoft continues to offer discounted non-profit pricing, not all plans are the same.
From our experience providing IT support for non-profits across the UK, Microsoft 365 Business Premium offers the best balance of value and security.
- Use Business Premium for the majority of users, especially with team members handling sensitive data, working remotely and using multiple devices.
- Reserve Business Basic (free for up to 300 users) is recommended for volunteers or temporary accounts with minimal access requirements.
- Avoid mixing Business Premium and Business Standard, as this can result in weakened security policies and increased administrative overhead.
How to prepare for these changes
- Audit your existing licences – Understand who’s using which plan
- Segment users – Identify which roles need Premium and which can use Basic
- Review your renewal dates – Know when the change will affect you
- Plan your licence switch – Don’t leave it until the last minute
- Engage a trusted partner – Texaport can help every step of the way
Why work with Texaport?
We’re already helping non-profits across the UK navigate this transition smoothly. With expert guidance, tailored advice, and security-first IT support, switching licences is hassle- and stress-free.
You don’t need to navigate this alone. Whether you need to assess your licence needs or want us to handle the migration for you, we’re here to help. Contact our team today and take the first step toward a smoother transition.
