Microsoft licensing for Irish charities

Microsoft Nonprofit Licensing for Irish Charities

Eligible charities and non-profit organisations may access a combination of Microsoft technology grants and discounted paid licences. The appropriate mix depends on the organisation's eligibility, the people who require licences, whether users are paid staff, unpaid executive leaders or volunteers, the applications and security features required, and the current grant and renewal position.

SAMI can review the information supplied and prepare a quotation for the appropriate current nonprofit offers.

For registered charities and eligible non-profit organisations in Ireland.

What Microsoft nonprofit licensing currently provides

Microsoft's nonprofit programme combines:

  • Granted licences, which are free but limited in scope and user eligibility.
  • Discounted paid licences, which provide access to a broader range of plans and may be assigned to a wider group of nonprofit workers.
  • Microsoft 365 Business Basic remains available as a grant for up to 300 eligible users.
  • Business Premium and Office 365 E1 are no longer available as free grants following the July 2025 change.
  • Business Premium, Business Standard, Office 365 E1 and other eligible offers may remain available at nonprofit pricing.
  • Microsoft describes discounts of up to 75% on many nonprofit offers, but this is a ceiling rather than a guaranteed discount on every product.
  • Actual availability, products, pricing and eligibility must be checked at quote stage.

Is our Irish charity eligible?

An organisation should generally be ready to demonstrate:

  • Recognised legal charitable or qualifying non-profit status.
  • A mission that benefits the wider community.
  • Entry in the Irish Register of Charities, where applicable.
  • Compliance with Microsoft's current eligibility and non-discrimination requirements.
  • That the organisation is not applying under an excluded category.

Registration with the Charities Regulator may support an Irish organisation's application, but Microsoft independently validates eligibility and makes the final decision.

Schools, colleges and other education institutions normally use Microsoft's education programme rather than the nonprofit programme. See Microsoft 365 Education licensing for Irish schools.

Microsoft excludes certain organisation types and activities under its current eligibility rules. The organisation should check Microsoft's current criteria before relying on an offer.

Practical eligibility checklist
  • Legal organisation name
  • Registered Charity Number, where applicable
  • Website and public mission description
  • Principal address
  • Microsoft tenant information, if one already exists
  • Authorised contact
  • Current Microsoft nonprofit-validation status
  • Current subscriptions or grants

How nonprofit validation works

  • The organisation applies through Microsoft's nonprofit registration experience.
  • Microsoft validates eligibility.
  • Approved organisations can then review available grants and discounted offers through the relevant Microsoft portal or admin experience.
  • Approval for the programme does not mean every Microsoft product is free.
  • The offers visible to the organisation depend on current eligibility, country availability and Microsoft's programme terms.

See the current Microsoft Learn — nonprofit registration and validation guidance.

What changed in July 2025?

Microsoft announced in May 2025 that the Microsoft 365 Business Premium grant and Office 365 E1 grant would be discontinued at each organisation's next renewal on or after 1 July 2025.

  • The change applied at renewal rather than converting every tenant on one universal date.
  • Granted Business Premium licences no longer renew as free grants.
  • Granted Office 365 E1 licences no longer renew as free grants.
  • Microsoft 365 Business Basic remains available as a grant for up to 300 eligible users.
  • Discounted nonprofit pricing remains available on many Microsoft offers.
  • An organisation using an affected grant should review its replacement licences before the old subscription ends.

Free grants and discounted Microsoft licences compared

Comparison of free Microsoft nonprofit grants and discounted nonprofit offers.
OfferCurrent treatmentMain licensing scopeDesktop applicationsSecurity and device managementEligible user categories85% granted-usage rulePricing treatmentWhen it may be considered
Microsoft 365 Business Basic grantFree grant for up to 300 eligible users, subject to Microsoft eligibility and programme terms.Web and mobile productivity services, organisational email and cloud collaboration. Exact included services should follow Microsoft's current offer.Does not provide the broader desktop Office entitlement of Business Standard or Business Premium.Core capabilities only compared with Business Premium. Does not include Business Premium's advanced identity, endpoint and security capabilities.Paid employees and eligible unpaid executive staff.Applies.Granted at no charge for up to 300 eligible users, subject to current Microsoft terms.Eligible users with core web and cloud productivity requirements.
Microsoft 365 Business Standard nonprofit pricingDiscounted paid nonprofit offer.Adds desktop productivity applications to the broader web and cloud services.Includes desktop productivity applications.Core Business capabilities without the advanced Business Premium security tier.Nonprofit staff and volunteers, subject to Microsoft's current rules.Does not apply merely because the licence uses discounted nonprofit pricing.Quote required.Users who need installed desktop applications without the broader Business Premium security tier.
Microsoft 365 Business Premium nonprofit pricingDiscounted paid nonprofit offer. It is no longer a free grant.Desktop productivity applications plus broader identity, security and device-management capabilities.Includes desktop productivity applications.Broader identity, endpoint and security capabilities than Business Basic or Standard.Nonprofit staff and volunteers, subject to current rules.Does not apply merely because the licence is discounted and paid.Quote required.Users who need broader security, identity and device-management alongside desktop applications.
Office 365 E1 nonprofit pricingDiscounted paid nonprofit offer. The former free grant no longer renews.Web-based enterprise productivity and collaboration services. Exact services must be checked against Microsoft's current offer.Does not provide the general desktop Office entitlement of Business Standard or Business Premium.Enterprise baseline; specific capabilities must be checked against the current Microsoft offer.Nonprofit staff and volunteers, subject to current rules.Does not apply merely because the licence uses discounted nonprofit pricing.Quote required.Enterprise-shaped organisations that previously used the E1 grant or require its scope.
Enterprise nonprofit plansDiscounted paid offers for organisations requiring broader enterprise, security, compliance or management capabilities.Enterprise productivity, security, compliance and management capabilities depending on the specific plan.Depends on the specific enterprise plan.Enterprise-grade capabilities depending on the specific plan.Nonprofit staff and volunteers, subject to current rules. Not every enterprise plan is available to every Irish organisation.Does not apply merely because the licence uses discounted nonprofit pricing.Quote required.Organisations whose enterprise security, compliance or management requirements are not met by the Business range.

Microsoft products, bundles, Teams availability, prices and discounts can change. The quotation must be checked against the current Irish offer available to the validated organisation.

Which staff and volunteers can receive nonprofit licences?

User categories eligible for granted or discounted paid nonprofit licences.
User categoryGranted licencesDiscounted paid licencesPractical note
Paid employeesEligible.Eligible.Standard nonprofit assignment.
Unpaid executive staffEligible, subject to Microsoft's definition.Eligible.Unpaid senior leadership such as trustees, directors or equivalent executive roles. May qualify where they meet Microsoft's definition.
General volunteers and other unpaid staffNot eligible for grants.May be eligible for discounted paid offers.Volunteer assignments should be reviewed against Microsoft's current volunteer rules.
Members, donors and beneficiariesNot eligible merely because of that relationship.Not eligible merely because they are members, donors or beneficiaries.A separate qualifying employment or role would need to apply.

The organisation should classify its users before requesting licences. Assigning granted licences to ineligible users can affect programme compliance.

What is Microsoft's 85% active-usage rule?

  • The requirement applies to granted Microsoft cloud licences.
  • It does not apply simply because a licence is purchased at discounted nonprofit pricing.
  • At least 85% of assigned granted licences must meet Microsoft's active-use requirement.
  • Microsoft assesses qualifying cloud-service activity over the relevant 90-day period.
  • Assigning a grant to a user who never signs in can reduce the organisation's usage percentage.
  • Microsoft may send utilisation warnings or other notifications.
  • Persistent underuse can place continued grant access at risk.
Practical steps
  • Review assigned grant licences.
  • Remove grants from people who no longer require them.
  • Confirm that active users can access the services assigned to them.
  • Review Microsoft 365 usage reports.
  • Distinguish granted licences from discounted paid licences.
  • Review warning notices before renewal.

Can a charity use both free and paid nonprofit licences?

Many charities may use a mix of:

  • Business Basic granted licences for eligible users with core requirements.
  • Discounted Business Standard or Business Premium licences for users who need desktop applications, management or security features.
  • Discounted licences for volunteers who are not eligible for grants.
  • The mix should follow Microsoft's assignment and eligibility rules.
  • Exact offer combinations must be checked in the organisation's tenant.
  • Different users can have different requirements.
  • The cheapest-looking option is not necessarily appropriate for every user.

What SAMI needs to prepare a nonprofit licensing quote

  • Legal organisation name
  • Registered Charity Number, where applicable
  • Organisation type and mission
  • Microsoft nonprofit-validation status
  • Existing Microsoft tenant, if one exists
  • Current granted and paid subscriptions
  • Current renewal date or renewal quarter
  • Number of paid employees
  • Number of unpaid executive staff
  • Number of volunteers requiring access
  • Number of users requiring desktop applications
  • Number of managed devices
  • Security and device-management requirements
  • Current granted-licence usage position, if known
  • Whether the organisation is moving from Business Premium or Office 365 E1 grants

How a new quote or renewal review works

  1. Step 1

    Confirm the organisation and users

    Review the organisation type, eligibility status and the people who need access.

  2. Step 2

    Review the current tenant and subscriptions

    Identify current grants, discounted licences and renewal dates from the information supplied.

  3. Step 3

    Separate granted and paid requirements

    Classify paid staff, eligible unpaid executive staff and volunteers, and identify the features each group needs.

  4. Step 4

    Compare current nonprofit offers

    Compare the current grant and discounted options available to the validated organisation.

  5. Step 5

    Prepare and approve the quotation

    SAMI prepares a quotation based on confirmed products, quantities, eligibility and Microsoft's current terms. The organisation reviews and approves it before ordering.

Preparing for a Microsoft nonprofit renewal

Begin before the current subscription ends. Review:

  • The renewal date.
  • Current Business Basic, Business Premium or Office 365 E1 subscriptions.
  • Whether any former grant is due to stop renewing.
  • Assigned users.
  • Granted-licence usage.
  • Users requiring desktop applications.
  • Security and device-management needs.
  • Volunteer access.
  • Licences no longer required.

For an affected Business Premium or Office 365 E1 grant, the charity may need to select replacement offers and reassign users before the old grant ends.

Need help with another charity software requirement?

This page focuses on Microsoft nonprofit licensing. Tell SAMI what software, user and renewal requirements your organisation is reviewing.

View software licensing overview

Microsoft nonprofit licensing questions

Is our Irish charity eligible for Microsoft nonprofit licensing?

An Irish organisation is generally expected to demonstrate recognised legal charitable or qualifying non-profit status, a mission that benefits the wider community, entry in the Register of Charities where applicable, and compliance with Microsoft's current eligibility and non-discrimination requirements. Microsoft independently validates eligibility and makes the final decision.

Does registration with the Charities Regulator guarantee approval?

No. Registration with the Charities Regulator may support an application, but it does not automatically grant Microsoft nonprofit approval. Microsoft assesses each organisation against its current programme rules and makes the final decision.

Which Microsoft 365 licence is still free for nonprofits?

Microsoft 365 Business Basic remains available as a grant for up to 300 eligible users, subject to Microsoft's current eligibility and programme terms. Business Basic is a web and cloud services offering; it is not equivalent to Business Standard or Business Premium in terms of desktop application and security capability.

What changed for nonprofit licences in July 2025?

Microsoft announced in May 2025 that the Microsoft 365 Business Premium grant and the Office 365 E1 grant would be discontinued at each organisation's next renewal on or after 1 July 2025. The change applied at renewal rather than converting every tenant on one universal date. Discounted nonprofit pricing may remain available on those and other offers.

Is Microsoft 365 Business Premium still free for charities?

No. Business Premium no longer renews as a free nonprofit grant. It may remain available at discounted nonprofit pricing subject to Microsoft's current terms.

Is Office 365 E1 still available as a free nonprofit grant?

No. The Office 365 E1 grant no longer renews for free. E1 may remain available at discounted nonprofit pricing subject to Microsoft's current terms.

Can volunteers use free Microsoft nonprofit licences?

No. Volunteers are not eligible for granted licences. They may be eligible for discounted paid nonprofit offers, subject to Microsoft's current rules.

What is the 85% active-usage rule?

At least 85% of a nonprofit organisation's assigned granted Microsoft cloud licences must meet Microsoft's active-use requirement over the relevant 90-day period. Assigning a grant to a user who never signs in reduces the active percentage. Persistent underuse can place continued grant access at risk.

Does the 85% rule apply to discounted paid licences?

No. The 85% active-usage requirement applies to granted nonprofit licences, not to licences purchased at discounted nonprofit pricing.

Can we combine Business Basic grants with paid nonprofit licences?

Many charities use a mix of Business Basic grants for eligible users with core requirements and discounted paid offers such as Business Standard or Business Premium for users who need desktop applications, device management or advanced security. The mix must follow Microsoft's assignment and eligibility rules and should be confirmed for the organisation's tenant.

What information is required for a quote?

Legal organisation name; Registered Charity Number where applicable; organisation type and mission; Microsoft nonprofit validation status; existing tenant if one exists; current granted and paid subscriptions; renewal date or quarter; approximate numbers of paid staff, unpaid executive staff and volunteers; number of users needing desktop applications; managed-device count; security and management requirements; and whether the organisation is moving from an affected Business Premium or Office 365 E1 grant.

What should we do if a grant renewal is approaching or has already ended?

Contact SAMI as early as possible so the current subscriptions, users and eligibility can be reviewed. For an affected Business Premium or Office 365 E1 grant, replacement offers may need to be selected and users reassigned before the old grant ends. Do not assume a specific grace period.

Official sources

Last reviewed: 23 July 2026 · Next review due: January 2027

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