Start by claiming every discount you're entitled to: Microsoft 365 Business Basic is free for up to 300 users, and Business Premium and Standard are discounted by up to 75%. Buy other software through TechSoup UK. Then review every IT and telecoms contract for unused services and price rises, standardise devices, and put the savings into security and support. A three-phase roadmap keeps spending predictable for trustees.
What changed in Microsoft's nonprofit offers?
On 1 July 2025 Microsoft discontinued two grants: the free Microsoft 365 Business Premium grant (10 licences) and the free Office 365 E1 grant. Existing licences expire at the charity's next renewal date and don't renew. What remains, according to Microsoft's nonprofit programme:
| Offer | Position in 2026 |
|---|---|
| Microsoft 365 Business Basic | Free grant for up to 300 users. Web and mobile Office apps, email, Teams, SharePoint, OneDrive and Copilot Chat. No desktop apps |
| Microsoft 365 Business Standard | Discounted nonprofit price. Adds desktop Office apps |
| Microsoft 365 Business Premium | Discounted nonprofit price (up to 75% off). Adds device management (Intune) and stronger security (Defender for Business and Entra ID conditional access) |
| Microsoft 365 E3 / E5 | Discounted nonprofit price, for larger charities |
| Microsoft 365 Copilot | Add-on at a discounted nonprofit price |
| Azure | US$2,000 of credits per year for eligible nonprofits |
Microsoft also expects grants to be used. It sends warnings when fewer than 85% of assigned licences are active in a 90-day period, and can disable nonprofit licences after long periods of inactivity. Unassign licences from people who've left.
How to mix licences sensibly
Most charities don't need Business Premium for everyone. A common pattern is:
- Business Premium for staff who handle sensitive data or use laptops away from the office, because it adds device management and stronger security
- Business Standard for staff who need desktop Word and Excel but work on managed office PCs
- Business Basic (free) for paid staff and trustees who mainly need email, Teams and shared files in a browser. Microsoft's free grants don't cover volunteers, so volunteers who need a full account use a discounted nonprofit licence, or join as guests with a personal Microsoft account
Check current eligibility and prices in the Microsoft Nonprofit Hub before you buy. Terms change.
Where else can charities get discounted technology?
Since 1 July 2025, the product catalogue previously run as the Charity Digital Exchange has been managed directly by TechSoup UK (techsoup.uk). It offers donated and discounted software, including Windows 11 Pro licences for eligible charities. Many hardware makers and software firms also have charity pricing. Ask before you buy.
What does IT really cost?
The licence is usually the smallest part of what IT costs. Total cost includes:
- Licences and subscriptions, including ones nobody uses
- Support, whether that's a provider or a staff member's time
- Devices and their replacement every four to five years
- Broadband, phone lines and mobiles
- Backup, security tools and insurance
- The cost of downtime and data loss when things go wrong
Put IT into full cost recovery when you bid for funding. Core costs are hard to fund, but funders find a budgeted, costed plan easier to justify than an emergency request.
A three-phase roadmap
- Stabilise. Claim nonprofit licensing, cancel unused contracts, turn on multi-factor authentication and back up Microsoft 365.
- Modernise. Move files to SharePoint, manage devices centrally, and move phones to the cloud before January 2027.
- Optimise. Automate admin, improve reporting to trustees and funders, and introduce AI where there's a clear use.
How Indigo does this. Indigo Unified Communications is a Microsoft Solutions Partner for Modern Work with more than 100 Microsoft 365 migrations completed. For charities we start with a licence and contract review, which often saves more than the cost of support. Our dedicated Charity package, supported from our Glasgow office, gives fixed monthly costs that are easy to budget and report to trustees. IT support for charities →
Frequently asked questions
What happened to the free Business Premium grant?
Microsoft discontinued it on 1 July 2025. Existing Business Premium grant licences expire at your next renewal date and don't renew. You can move those users to the free Business Basic grant or buy Business Premium at the discounted nonprofit price. Plan the move before renewal to avoid losing access or data.
Can volunteers use our free Microsoft 365 licences?
Not the free ones. Microsoft's granted licences, including free Business Basic, are only for paid employees and unpaid executive staff such as trustees. Volunteers can use Microsoft's discounted nonprofit licences, or be invited as guests with a personal Microsoft account if they only need Teams and shared files. Remove licences when volunteers leave, as Microsoft monitors how many assigned licences are actually used.
Sources: Microsoft, Microsoft for Nonprofits: updates (July 2025 grant changes) (https://learn.microsoft.com/en-us/industry/nonprofit/microsoft-for-nonprofits/updates) · Microsoft, Grant usage and recurring notifications (https://learn.microsoft.com/en-us/industry/nonprofit/microsoft-for-nonprofits/grant-usage-recurring-notifications) · Microsoft, Nonprofit eligibility (licence usage: grants vs discounts) (https://www.microsoft.com/en-us/nonprofits/eligibility) · Charity Digital, Changes to the Charity Digital Exchange, 2025 (https://charitydigital.org.uk/topics/changes-to-the-charity-digital-exchange-12151).
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