Microsoft 365 Nonprofits Pricing & Licensing Guide

Microsoft 365 Nonprofits Pricing & Licensing Guide

Microsoft offers eligible nonprofit organizations a combination of free grants and discounted Microsoft 365 licenses, making enterprise-grade productivity, collaboration, and security accessible at a significantly lower cost than commercial pricing. Available plans depend on your organization’s size, eligibility, and country. 

Who qualifies?

Organizations generally must be validated as eligible nonprofits before accessing nonprofit pricing. Eligible organizations typically include:

  • Registered nonprofit organizations with recognized legal status

  • Public libraries

  • Public museums

  • Certain qualifying healthcare organizations (in supported regions)

Government agencies, most educational institutions, financial institutions, and commercial businesses are generally not eligible. Validation usually takes up to three business days, although additional documentation may be required. 

Microsoft 365 nonprofit licensing options

Microsoft provides two main licensing approaches:

License TypeBest ForPricing
Grant licensesSmall nonprofits needing core productivityFree (eligible offers)
Discounted licensesOrganizations requiring advanced security and managementSignificant nonprofit discounts

Available offers vary by country and may change over time. 

Common Microsoft 365 nonprofit plans

PlanTypical Use CaseKey Features
Microsoft 365 Business BasicSmall nonprofitsExchange email, Teams, SharePoint, OneDrive, Office web apps
Microsoft 365 Business StandardStaff needing desktop Office appsDesktop Office, email, Teams, cloud storage
Microsoft 365 Business PremiumOrganizations requiring securityEverything in Standard plus Intune, Defender, device management, advanced security
Microsoft 365 E3 NonprofitMid-size and enterprise nonprofitsEnterprise productivity, compliance, Windows Enterprise
Microsoft 365 E5 NonprofitLarge organizationsAdvanced security, compliance, analytics, Teams Phone capabilities

Enterprise nonprofit pricing

Current published nonprofit staff pricing includes:

  • Microsoft 365 E3 (Nonprofit): $9.00 per user/month

  • Microsoft 365 E5 (Nonprofit): $22.80 per user/month

Both plans are billed annually and include desktop Office applications, Teams, enterprise security, cloud storage, and Windows Enterprise licensing. E5 adds advanced security, compliance, Power BI, and Teams Phone capabilities. 

Business Premium nonprofit discount

Microsoft now offers discounted Business Premium licensing for eligible nonprofits rather than the previous grant program.

Business Premium includes:

  • Desktop Microsoft Office

  • Microsoft Teams

  • Exchange Online

  • SharePoint

  • OneDrive

  • Microsoft Intune

  • Microsoft Defender

  • Device management

  • Conditional Access

  • Advanced security features

Microsoft highlights nonprofit discounts of up to 75% on Business Premium for eligible organizations. 

What’s included in Microsoft 365 nonprofit licensing?

Most nonprofit subscriptions include:

  • Word

  • Excel

  • PowerPoint

  • Outlook

  • OneNote

  • Microsoft Teams

  • Exchange Online

  • SharePoint Online

  • OneDrive for Business

  • Microsoft Forms

Higher-tier plans also include:

  • Microsoft Intune

  • Microsoft Defender

  • Microsoft Purview

  • Windows Enterprise

  • Advanced identity protection

  • Compliance tools

  • Device management

Additional nonprofit benefits

Eligible organizations may also receive access to:

  • Azure annual cloud credits

  • Discounted Dynamics 365

  • Power Platform discounts

  • GitHub for Nonprofits

  • LinkedIn nonprofit offers

  • Discounted Microsoft Copilot licensing (where available)

Availability varies by country and organization type. 

Volunteer licensing

Microsoft distinguishes between grants and discounts:

  • Grant licenses are generally intended for eligible paid nonprofit employees and qualifying unpaid executive leadership.

  • Discounted nonprofit licenses can also be assigned to volunteers in accordance with Microsoft’s licensing rules.

  • Donors, members, and beneficiaries are not eligible users for nonprofit licenses. 

How to apply

  1. Verify your nonprofit eligibility.

  2. Complete Microsoft’s nonprofit validation process.

  3. Wait for approval.

  4. Access available grants and discounts through the Nonprofit Hub.

  5. Assign licenses to eligible users.

Organizations are limited to one validated nonprofit tenant. 

Which nonprofit plan should you choose?

OrganizationRecommended Plan
Small charity needing email and collaborationBusiness Basic
Staff requiring desktop Office appsBusiness Standard
Nonprofits needing endpoint security and device managementBusiness Premium
Large organizations with compliance requirementsMicrosoft 365 E3
Organizations requiring advanced security and analyticsMicrosoft 365 E5

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