Microsoft Ends Free Software for Nonprofits—MNA Tech Explains the Impact for Michigan Nonprofits

Nonprofits are already facing tough challenges like budget cuts and funding issues. Now, there’s more bad news—Microsoft has announced it will stop offering its free software program for nonprofits. This program, which has helped over 400,000 nonprofits worldwide with tools like Microsoft 365 and Office 365, will end in July. I spoke with Adam King, Technology Director at MNA Tech, to learn how this will affect Michigan’s nonprofits. 

 Adam, this software is crucial for many nonprofits. Given the recent news, how do you anticipate nonprofits will react to this change? What impact do you foresee it having on them? 

Adam: “What’s going away here is the free/donated licensing offer. Luckily, nonprofits still have access to deeply discounted rates for Microsoft licensing. For many years, Microsoft offered 10 free Business Premium licenses. Once you went beyond 10, you had to pay for each one at a rate of $5.50/license/month. Now, nonprofits will have to pay for all their licensing. In the end, this will end up costing nonprofits more money, possibly up to an extra $55/month.” 

 For nonprofits that have heavily relied on this software, what advice would you offer them to help them pivot and adjust to this new reality? “The reality is that it is just going to cost more money to operate going forward. MNA Tech still recommends Microsoft 365 as a productivity platform and recommends switching to the paid licenses for smooth migration and to continue to use the platform. It is important to note that at $5.50 per license, this still represents a significant discount from the $22.00/license retail price.” 

Are there any viable alternatives to this software that nonprofits can consider? How do these alternatives compare in terms of functionality and support? 

“Sure. Nonprofits can opt for the less expensive subscription from Microsoft called Business Standard which is $3.00/license/month. This offers many of the same features as Business Premium, including access to install the full Microsoft Office suite on their computers. Check with your IT contact first in case your organization is using the advanced features of Business Premium. 

 Alternatively, nonprofits can order one-time cost licensing for Microsoft Office suites like Office 2024 from the software vendor, TechSoup. This can cause more headaches than it is worth, however, because this license type doesn’t integrate fully with the Microsoft 365 

platform and can cause some workflow issues. However, if your nonprofit uses Google Workspace for their email platform, one-time cost licensing is an option. Note that you’ll need to pay the upgrade fees for these types of licenses every few years, but it does, essentially allow you to avoid a monthly subscription fee.” 

What steps do you recommend nonprofits take moving forward to ensure continued success and adaptability in light of these changes? 

There is action required on your part to ensure you retain access to your data and accounts in light of this change. The person listed as the Administrator of your Microsoft account will have gotten an email with the end of service date. It is important you log into the Microsoft administrator panel, purchase enough licenses (either Business Premium at $5.50ea, or Business Standard at $3.00ea) and assign them to your users before the date listed in the email. 

Make sure to save your data before the July deadline. Monthly renewals will expire much sooner. For example, your monthly contract renews on June 10, 2025, it will be valid through July 09, 2025. If you are on a monthly contract, you might want to switch your existing licenses to an annual contract before July 1. This will give you more time to find an alternative. 

If you need help with your tech, MNA Tech is here to support you. We can handle your monthly tech needs, so you can focus on your mission.