Microsoft Business Premium for nonprofits after the grant: who needs it?

What changed in Microsoft's nonprofit Business Premium grant?

Microsoft ended the free Business Premium grant and replaced it with a discount. According to Microsoft's nonprofit program updates, the Microsoft 365 Business Premium grant and the Office 365 E1 grant were discontinued, and existing grant licenses expire on the organization's next renewal date on or after July 1, 2025 without renewing. What remains is up to 300 granted Microsoft 365 Business Basic licenses and discounts of up to 75 percent on many Microsoft 365 plans, including Business Premium.

For most organizations that renewed in the second half of 2025 or since, the grant is already gone. Microsoft's current nonprofit price list shows Business Premium at $5.50 per user per month, Microsoft 365 E3 at $9.75, Microsoft 365 E5 at $24 and the Copilot add-on at $25.50, all paid yearly. Copilot Chat is included in Microsoft 365 subscriptions, and the annual Azure grant is $2,000 in credits.

What does Business Premium protect that Business Basic does not?

Control over who signs in, from which device, and what happens on that device. Microsoft's Business Premium security documentation says the plan includes full Intune device management, Microsoft Entra ID P1, and Microsoft Defender for Business on managed PCs. Those three pieces let a nonprofit require a compliant device before anyone opens donor records, wipe a lost laptop, and detect malware on staff machines.

Entra ID P1 matters most. Conditional Access requires Entra ID P1 licenses, and it is how an organization blocks sign-ins from unmanaged devices or unexpected countries. P1 also extends sign-in and audit log retention from 7 days on the free tier to 30 days, which decides whether an investigation after a suspicious login has anything to work with. An organization with no P1 licensing at all can still turn on Microsoft's security defaults, which require multifactor authentication for everyone at no extra cost. For more no-cost steps, see cybersecurity for nonprofits: five free wins.

What happens to existing security policies when Premium licenses lapse?

They freeze. Microsoft says Conditional Access policies are not disabled or deleted when the licenses behind them expire, and administrators can still view or delete them, but they cannot update them. A nonprofit that let its donated Premium licenses run out without a plan may have rules that look active but cannot be adjusted when staff leave, devices change or a new threat appears. If your tenant is in that state, decide which users need Premium, license them, and review every policy before relying on it.

How much does a mixed license plan cost?

Usually far less than licensing everyone. At $5.50 per user per month, 20 staff on Business Premium cost $1,320 a year, and 40 volunteers or part-time users on granted Business Basic cost nothing. There is one ceiling to plan around: Microsoft's Business Premium FAQ says organizations may provision up to 300 seats total across Business Basic, Standard and Premium combined. A nonprofit with more than 300 users moves to enterprise plans such as Microsoft 365 E3 at $9.75 per user per month.

Before buying, reclaim licenses that are doing nothing. Accounts for departed staff and shared mailboxes under 50 GB often hold licenses they do not need, and every seat counts against the same 300 cap.

Where do Copilot and the Azure grant fit?

After the security baseline, and only for the people who will use them. Microsoft's nonprofit pricing includes Copilot Chat in Microsoft 365 subscriptions at no extra charge, while the Copilot add-on costs $25.50 per user per month, more than four times the Business Premium price. That makes it worth piloting with a few heavy document writers before buying broadly, and only after Premium protections are in place for those users. The annual Azure grant is $2,000 in credits, down from $3,500 for renewals on or after October 1, 2023, according to Microsoft's program updates. Price out any planned workload against that amount before counting on the grant to cover it.

Who should get Premium and who can stay on Basic?

Give Premium to anyone whose account could expose people the organization serves or its money. A practical sort looks like this:

• Premium: executive director, finance and payroll staff, development staff with donor database access, case managers handling client records, HR, and every IT administrator account.
• Premium: anyone who stores organization files on a laptop that leaves the office.
• Basic: volunteers and seasonal helpers who need email, Teams and web Office apps but no access to sensitive records.
• Basic: board members who only need a mailbox and shared board documents, provided board materials do not include client or donor detail.

The sort will not be perfect. Write down the reasoning so the decision holds when a funder or auditor asks why some accounts have stronger protection than others.

What should a nonprofit do this quarter?

• Check your renewal date and current license mix in the Microsoft 365 admin center.
• List every user by role and the data they touch, then sort them into Premium and Basic.
• Remove licenses from departed staff and from shared mailboxes that do not need one.
• Confirm multifactor authentication covers every account, including Basic-only volunteers, and that no account is quietly excluded from your sign-in policies.
• Review any Conditional Access policies left from the grant era and confirm they can still be edited.
• Put the Premium cost in next year's budget as a program-protection line that the board can see and approve.

How does s90 help?

s90 works with nonprofits and social service agencies across Los Angeles and Orange County to right-size Microsoft 365 licensing, set up Conditional Access and device management for the staff who need it, and keep volunteer access simple. If your grant licenses have lapsed and you are not sure what is still protecting your tenant, we are happy to take a look with you.