For years, many nonprofit organizations benefited from a quietly powerful offering: Microsoft’s Business Premium licenses, provided at no cost to registered charities. These plans enabled teams to access full Office desktop apps, device management, and enterprise-grade security — all without impacting limited budgets.
But that’s now coming to an end. Microsoft has announced that its free Business Premium offering will be replaced with up to 300 free Business Basic licenses. For those needing more advanced features, Microsoft is offering up to a 75% discount on paid Business Premium plans.
While that may sound like a fair trade at first glance, the implications are deeper than they seem. For many nonprofits, this change could significantly affect how they work, manage devices, protect sensitive data — and ultimately, how much they spend to stay secure.
A Breakdown of What’s Changing
If your nonprofit has been using Microsoft 365 Business Premium for free — complete with desktop apps like Word and Excel, plus tools like Intune and conditional access — those plans will be discontinued.
Instead, Microsoft will now offer free access to Business Basic, which includes online versions of Office apps, Microsoft Teams, and Exchange email — but lacks installable desktop apps and most advanced security and management capabilities.
Nonprofits who need more will have the option to purchase Business Premium licenses at a significantly reduced rate. Still, for organizations that have never had to factor this into their budget, even a discounted rate represents a new and potentially unwelcome expense.
Business Basic vs. Business Premium: What’s the Difference?
- Business Basic: Web-only Office apps, Teams, Exchange email, and cloud storage.
- Business Premium: Includes everything in Basic, plus full installable Office apps, Intune, Microsoft Defender for Business, and remote device management capabilities.
For occasional users or volunteers, Basic may be sufficient. But for staff handling sensitive information, working remotely, or managing organizational infrastructure, Premium often isn’t just helpful — it’s essential.
Why This Impacts Your Security Posture
Cybersecurity isn’t just about firewalls and antivirus software — it’s about consistent protection across users and devices. Business Premium includes tools like Intune, which lets you enforce security policies, control device access, and remotely wipe lost or stolen hardware.
Without these features, your organization is more vulnerable to data leaks, phishing attacks, and unauthorized access — especially if staff are using personal or unmanaged devices.
For nonprofits that handle personal donor information, financial records, or healthcare-related data, the risk of noncompliance with regulations like GDPR or HIPAA increases significantly.
Weighing the Cost of Staying Protected
Even at a 75% discount, Business Premium still carries a cost. For a nonprofit with 10 staff members, this could mean an additional $500+ per year — and more for larger teams.
That may require reshuffling your budget or making strategic decisions about who truly needs Premium access. While these conversations may be challenging, they also offer a chance to evaluate how licenses are used and identify where efficiency can be improved.
Steps to Take Right Now
If you haven’t already, perform an internal audit of your Microsoft 365 environment. Consider the following:
- Which team members use which features?
- Who needs access to desktop apps, device management, or enhanced email protection?
- Could some roles function well on Basic, while others remain on Premium?
Also, be aware of Microsoft’s transition timeline. If you don’t act in time, licenses may be downgraded automatically — potentially stripping away critical features without warning.
It’s wise to speak with an MSP or IT provider experienced in nonprofit solutions. They can help you build a cost-effective plan while minimizing risk and downtime.
Final Thoughts
This kind of change is never easy, especially for organizations already juggling limited resources. But with the right planning and support, it’s absolutely manageable.
At Carden IT Services, we work closely with nonprofits to streamline their licensing, secure their systems, and make the most of every dollar. Whether you need help transitioning licenses or strengthening your cybersecurity setup, we’re here to guide you.
Microsoft may have changed the terms — but that doesn’t mean your mission has to suffer. Let’s make sure you have the tools you need to keep doing what you do best: serving your community, safely and effectively.
