End of the line: all change for Charity Business Premium donations

Do you run a not-for-profit organisation?

If so, here’s some important news which could have a direct impact on your bottom line.

Microsoft has generously donated subscriptions of a range of software products to charities since 2002.  The 300 (three hundred) free Business Basic licences remain in place, but the valuable 10 (ten) Business Premium licences will no longer be available, along with Exchange Online subscriptions.

Could this be the end of a beautiful friendship?

A Business Premium subscription provides Office software AND emails, along with a range of security features and business applications.  Not-for-profit organisations can continue to purchase Business Premium subscriptions at greatly reduced pricing, but the donation will certainly be missed, especially for smaller charities who would not ordinarily invest in technology.

Emails are landing in inboxes with the following message:

• The Microsoft 365 Business Premium grant will be discontinued on your next renewal on or after July 1, 2025. Your licenses will expire on XXXXXXXXXXX. We will continue to provide up to 300 granted licenses of Microsoft 365 Business Basic and discounts of up to 75 percent on many Microsoft 365 offers to nonprofits, including Microsoft 365 Business Premium.

The solution proposed by Microsoft:

• You can switch your users over to the (still) free Business Basic licences (no Office software, email only).
• You can purchase other software, including Business Premium, at the reduced not-for-profit rate.
• You can process these changes directly yourself, or you can use the services of a Microsoft partner (such as Computer Troubleshooters). Instructions are provided in the email.
• It is suggested that you make the switchover ahead of the anniversary date to ensure that you don’t lose access to services and data.

Our previous experience of transitions from legacy Microsoft 365 subscriptions is for the old licence to be replaced with NCE (New Commerce Experience) monthly/annual licensing.  Monthly/annual means that the billing takes place on a monthly basis, but the subscription can only be reduced or cancelled at the annual anniversary.  We understand that the legacy donated Business Premium licences will simply be cancelled without anything being put in its place.  Maybe there are charity accounts which have no valid form of payment registered, as the not-for-profit organisation has been enjoying cost-free licensing up to this point.  Note that this is just conjecture; no reasoning is explicitly given in the Microsoft email.

What should you do?

Before you act, find out the impact for your charity:

• Do you use the Microsoft Business Premium or Exchange Online donation?
• How many subscriptions are involved?
• When is the anniversary date?
• Are there licences which are no longer in use, but have been left in place as they were free-of-charge? This is a good opportunity to do some housekeeping and tidy things up, with the added bonus of improving your cyber security.
• Check the cost of discounted Business Premium licences going forward, so that you can budget for the increased IT cost. You can opt for monthly billing, which gives more flexibility, or annual billing which can only be modified at the anniversary and offers a lower unit cost.

Armed with this information, it should be clear which replacement subscriptions need to set up and when this is due.

Whatever you choose to do, do something!  The change will happen and it is better to have a plan in place than to have an unsuitable solution foisted onto you.

Is the world of Microsoft licensing simply too confusing?  Then it’s time to call in the professionals.   Computer Troubleshooters works with several local charities and will guide you through the subscription maze.