Microsoft 365 Business Premium and Office 365 E1 Grants Are Going Away—Now What?
- Lili Kutcher, HBS Microsoft Licensing Specialist
- Read Time: 3 mins
If your nonprofit relies on either the Microsoft 365 Business Premium grant or Office 365 E1 grant for licenses, it’s time to plan ahead. Starting July 1, 2025, Microsoft will end these grant programs. That means your next renewal could come with a new price tag.
Here’s what’s happening, what it means for your organization, and how HBS can help you navigate the shift.
What’s Changing with Microsoft 365 Business Premium and Office 365 E1 Grants?
Microsoft is retiring two long-standing grant offers for nonprofits:
- Microsoft 365 Business Premium grant
- Office 365 E1 grant
These grants will no longer be available after your next renewal following July 1, 2025. That means if your renewal is in August 2025, you can use the grant until then. But after that? It’s time to transition to a paid plan or a different grant option.
This move is part of Microsoft’s effort to streamline its nonprofit offerings and simplify its grant portfolio.
Which Microsoft Grants Are Still Available?
The Microsoft 365 Business Basic grant—offering up to 300 free licenses—will continue to be available.
In addition, Microsoft will offer discounted pricing on other Microsoft 365 plans, including Microsoft 365 Business Premium, which will be available at $66 per user per year (annual term, paid annually).
What’s the Cost Impact?
What Should You Do Now?
- Check your renewal date: This determines when your grant access will end.
- Review your license use: See which users are on the soon-to-be-discontinued plans.
- Compare options: Evaluate if Microsoft 365 Business Basic can meet your needs or if you’ll need to budget for Microsoft 365 Business Premium or another plan.
- Talk to a Microsoft Licensing Expert: That’s where HBS comes in.
HBS Will Help You Make the Right Microsoft Licensing Decisions
At HBS, we’ve guided many nonprofits through Microsoft licensing changes. We’ll help you:
- Understand your current grant usage
- Forecast future costs
- Right-size your licenses to meet your mission and your budget
- Transition with minimal disruption
Let’s simplify this together—reach out to HBS today.
FAQ: Microsoft 365 Business Premium and Office 365 E1 Grant Discontinuation
When exactly are these grants ending?
The grants will end on your organization’s next renewal after July 1, 2025. You can continue to use the licenses until that date.
Which grants are affected?
The Microsoft 365 Business Premium and Office 365 E1 grants are being discontinued. The Microsoft 365 Business Basic grant (300 free users) will remain available.
What will it cost to keep using Microsoft 365 Business Premium?
Microsoft is offering Microsoft 365 Business Premium at $66 per user per year for nonprofits on an annual term. If you previously used 10 free licenses, that’s an added $660/year.
What if I’m using Office 365 E1 licenses?
You can either switch to the free Microsoft 365 Business Basic plan, or choose to pay $30 per user per year to keep comparable functionality.
Is Microsoft 365 Business Basic really a good alternative to Office 365 E1?
In most cases, yes. Microsoft 365 Business Basic offers web and mobile versions of Office apps, email hosting, OneDrive, Teams, and more. For organizations that don’t need desktop apps, it’s a strong free option.
How do I know what I’m using today?
HBS can review your current licensing with you and help build a plan for what’s next. We make it easy.
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