Microsoft announced it is making a major change to how it supports nonprofits, reducing the licensing features they’re used to getting for free. Nonprofits currently running on Microsoft 365 need to be ready, as this could severely impact your productivity.
Starting July 1, 2025, Microsoft will no longer offer free grant licenses for Microsoft 365 Business Premium and Office 365 E1. That means nonprofits currently relying on these licenses will lose access to several essential tools and security features.
If your organization holds these licenses, you can keep them until your next renewal date. But after that, you’ll face a decision:
- Switch to Microsoft 365 Business Basic (free, up to 300 users)
- Purchase discounted Business Premium or E1 licenses (up to 75% off)
Without a plan, this change could disrupt the way your nonprofit team works, especially if you’re handling sensitive donor, patient, or member data.
The Changes and Their Impacts on Non-Profits
It’s critical for nonprofits to understand how these changes will affect them. While it may seem like downgrading to Microsoft 365 Business Basic, it is a minor IT issue, but it will seriously jeopardize your security. For many nonprofits, especially those handling donor data, member records, or health information, this could expose your organization to unnecessary risk.
Here are the six critical differences between Business Premium and Business Basic, and what they mean for your nonprofit:
1. Email Security
- Business Premium includes Microsoft Defender for Office 365, which protects users from phishing attacks, malicious links, and unsafe attachments.
- Business Basic only provides standard spam and malware filters through Exchange Online Protection.
Why it matters: Phishing is still the #1 cause of data breaches. Without Defender, your team is more vulnerable to targeted attacks designed to trick staff into clicking malicious links or opening infected files.
2. Device Management
- Business Premium gives you Microsoft Intune, which lets you manage and secure devices, including lost or stolen laptops and phones.
- Business Basic includes no real device management beyond some very limited mobile settings.
Why it matters: If staff or volunteers access nonprofit data on personal or unmanaged devices, you lose the ability to enforce policies, remotely wipe data, or secure endpoints. That’s a major risk for any organization dealing with sensitive information.
3. Threat Detection and Response
- Business Premium includes Microsoft Defender for Business, with features like endpoint detection and response (EDR), threat analytics, and vulnerability management.
- Business Basic doesn’t include any of these protections.
Why it matters: Nonprofits are increasingly targets for cybercrime, but without these tools, your team won’t even know they’ve been compromised until it’s too late. Defender helps you detect, respond to, and stop attacks in real time.
4. Information Protection and Encryption
- Business Premium offers automatic labeling, classification, and encryption through Azure Information Protection.
- Business Basic only offers basic, manual document labeling.
Why it matters: If your nonprofit stores donor records, financial documents, or confidential data, Business Premium ensures that information is protected automatically. Basic leaves it up to individual users to decide what to protect, increasing the risk of human error.
5. Identity and Access Management
- Business Premium supports Conditional Access policies and advanced identity protection tools through Azure AD Premium.
- Business Basic only supports basic multi-factor authentication (MFA).
Why it matters: Business Premium lets you control who accesses what — and from where. For example, you can block sign-ins from risky locations or require extra steps when users log in from unfamiliar devices. Without this, your team’s accounts are more vulnerable to credential theft.
6. Compliance and Auditing Tools
- Business Premium includes Data Loss Prevention (DLP), advanced auditing, and compliance manager tools.
- Business Basic offers very limited auditing features.
Why it matters: If your nonprofit needs to meet industry standards, protect personal information, or prepare for audits, Premium’s compliance tools help ensure your policies are being followed. Basic may leave you without a way to prove that you’re protecting sensitive data properly.
How To Get Your Nonprofit Ready
Doing nothing and letting the changes happen is just asking for a security problem. Nonprofits need to be ready to respond to stay and run their best. Here’s what to do:
1. Don’t downgrade by default
Even with a tight budget, Business Basic isn’t always the right fit. You can mix free Basic licenses with discounted Premium seats for staff who need higher security or management capabilities.
2. Evaluate your current licensing
Microsoft doesn’t notify partners like us of your licensing status. So it’s up to you to assess what you’re using — and what you’re losing. We can help.
3. Plan ahead for security and cost
Let Sure Systems help you design a plan that protects your users, data, and budget. Whether that’s a mix of license types, security add-ons, or a staged rollout, we’ll make sure you’re not left exposed after your next renewal.
Find Out What This Change Means for You
Losing access to Microsoft’s free Business Premium licenses may feel like a blow you don’t need with things that are already tight. It doesn’t have to compromise your mission or your security.
At Sure Systems, we’re here to help you navigate the change, protect your team, and make smart decisions that fit your budget. While help you navigate the changes and develop a plan that’s right for you.
✅ Schedule a free consultation and we’ll review your current setup, identify risks, and build a strategy that keeps your nonprofit productive, compliant, and secure.
Let’s make sure your nonprofit stays protected, without overpaying for IT.
