Pricing for nonprofits
Eligible nonprofits get Microsoft 365 Business Basic free for up to 300 users. Standard ($3.50) and Premium ($5.50) plans add desktop apps.
Review for nonprofits
Microsoft 365 is a productivity and collaboration suite nonprofits use for email, document creation, spreadsheets, presentations, file sharing, and video meetings.
The nonprofit program centers on a Business Basic grant: free for up to 300 users with web and mobile apps. Organizations that need desktop Office apps or advanced security step up to heavily discounted Standard or Premium plans after Microsoft nonprofit registration.
Typical nonprofit uses:
- Run staff email, calendars, and contacts on a custom domain.
- Draft grant proposals, budgets, and board reports collaboratively.
- Meet and co-author files in Teams across offices and remote staff.
Pros:
- Free 300-seat Business Basic grant covers the full basics for most nonprofits.
- Deep, published discounts on Standard, Premium, and security add-ons.
- Volunteers and temporary staff can use discounted plans alongside grant seats.
Cons:
- Desktop Office apps require paid Standard or Premium: the free grant is web and mobile only.
- Grant compliance overhead: an 85% active-use rule, staff-only grant seats, and periodic attestation.
FAQ about Microsoft 365 for nonprofits
Is Microsoft 365 Business Basic really free for nonprofits?
Yes. The grant covers up to 300 users with web and mobile apps, Teams, custom-domain email, and 1TB of storage per user.
Which organizations qualify?
Registered nonprofits, public libraries, and museums with a community-benefit mission (plus listed US health organizations such as FQHCs and RHCs), approved through Microsoft nonprofit registration, which can take up to 7 business days.
Can volunteers use it?
Grant seats cover paid and executive staff only. Discounted plans extend to volunteers and temporary staff, but not to donors or members.
What should we budget for?
Nothing for Basic grant seats. Budget $3.50 per user per month for Standard (desktop apps) or $5.50 for Premium (advanced security), billed annually, plus any Defender or Purview add-ons at 60% off.
Alternatives to Microsoft 365
Find more tools with free options and discounts for nonprofits in Productivity and office tools
Google Workspace
100% free
Custom-domain email and collaboration free for nonprofits, with steep paid upgrades. Google Workspace for Nonprofits costs $0 per user with custom Gmail and 100TB pooled storage. Paid upgrades...