Microsoft for Nonprofits review - free Microsoft 365 for up to 300 users, plus Azure credits

What it is

Microsoft for Nonprofits is Microsoft’s package of donated and discounted cloud products. The headline offer is Microsoft 365 Business Basic donated free for up to 300 users - web and mobile Office apps, business email, Teams, and 1 TB of OneDrive storage per person at no license cost. It also includes $2,000 per year in Azure credits for hosting, virtual machines, or databases.

What it costs and how to qualify

Business Basic is free for eligible organizations up to that 300-user cap. If you need the desktop apps and stronger security of Business Premium, nonprofits pay from around $5.50 per user per month, roughly 75% off the standard rate. Eligibility is validated through TechSoup, so registering there once opens the door to these offers.

The catch: the free Business Premium is gone

This is the important change. Microsoft discontinued the fully donated grants for Business Premium and Office 365 E1 as of July 1, 2025. Those licenses now expire at each organization’s next renewal on or after that date, and the products are offered at a discount rather than free. If your org was relying on donated Business Premium seats, budget for the discounted price going forward. Business Basic for up to 300 users remains a genuine free grant.

The honest take

For nearly every small nonprofit this is a clear yes: free email and collaboration for a whole staff is hard to beat, and the Azure credits are a useful bonus. Just size your plan around the 2025 change so a renewal does not surprise you. No affiliate relationship here - Microsoft does not pay us, this is listed because it saves nonprofits real money.