Microsoft partners have questioned the vendor’s decision to terminate its grant programme for non-profits, with one labelling it a “digital curveball”.
The software giant last week announced it will cease offering 10 free Microsoft 365 Business Premium licenses to eligible non-profits, as of 1 July.
The move – which has spawned a petition calling for its reversal – came just days after Microsoft announced a 19% year-on-year hike in Q3 operating profits to $32bn.
Microsoft said the change is designed to “streamline our grant offerings and simplify our grant portfolio”, adding that it is transitioning to provide up to 300 licenses of Microsoft 365 Business Basic and discounts of up to 75% on many Microsoft 365 offers to non-profits.
Channel partners serving the sector reacted with disappointment, however, with Candice Arnold, Chief Revenue Officer at London-based Microsoft partner Wanstor, characterising it as a “digital curveball to thousands of UK charities running on shoestring budgets”.
“Frontline teams are now being asked to pay for productivity, downgrade their security, or ditch the digital progress they’ve made, just to keep the lights on,” she told IT Channel Oxygen.
“Wanstor’s suggestion is to deepen talks with your service provider to look at novel licensing options and practical ways to keep IT costs low without compromising your mission.”
In a LinkedIn post, Adam Graham, MD of Kent-based Microsoft partner Qlic IT for Charities, said he was “shocked and disappointed” that Microsoft is “pulling the rug out from under non-profits – with just six weeks’ notice”.
Talking to IT Channel Oxygen, Graham said non-profits impacted by the move could save money by following three steps.
“My advice would be that people first check their renewal dates, as it only applies from the annual renewal date after 1 July,” he said.
“Then check what they are actually using. They might not need all 10 licenses or the premium license; they may be able to reduce numbers, consolidate logins and select a lower tier.
“Lastly, renew on a one-year term when they have to as that will save them 20% on the monthly license costs.”
A Microsoft spokesperson issued IT Channel Oxygen with the following statement:
“As part of a recent update to our nonprofit offers, we are retiring the Microsoft 365 Business Premium and Office 365 E1 grant offers. Existing grant recipients can continue service through their next renewal on or after July 1, 2025. When they renew, eligible nonprofits will have several options to maintain access to secure, modern collaboration tools – including up to 300 free Microsoft 365 Business Basic licenses and up to a 75% discount on Microsoft 365 Business Premium and Office 365 E1. We’re committed to making this transition smooth and are working closely with partners to provide clear guidance and hands-on support.”
