Microsoft ends free Office licenses for non-profits

What organizations need to know now

As of July 1, 2025, Microsoft has changed its licensing model for non-profit organizations. Free Office licenses are now a thing of the past—a move that poses new challenges, especially for larger aid and environmental organizations.

Who is affected by the change?

For smaller organizations with fewer than 300 users, the impact will remain manageable. They can continue to use their Microsoft 365 environment largely as usual without having to expect any noticeable additional costs.
The situation is different for larger non-profits such as Greenpeace, Four Paws, WWF, or Caritas. Here, fixed IT costs will rise significantly, as licenses will have to be paid for in the future.

Particularly relevant:

• Fixed costs are rising – basic IT costs must be recalculated.
• Project-related IT costs - can be included in funding projects on a pro rata basis, but do not cover the entire burden.
• Donation and sponsorship financing - is becoming more important, as public funds usually only cover part of the financing.

Why consulting is important now

Many of these organizations are already under pressure to modernize their structures and make their work processes more efficient. The switch to the new Microsoft pricing model can be a good opportunity to reevaluate IT strategies.

• Understanding licensing models - Which Microsoft 365 plans are really suitable?
• Sharing costs fairly - How can basic and project costs be separated in a meaningful way?
• Examining multi-tenant scenarios - How can organizations that are only loosely associated (e.g., in animal welfare and environmental protection) use individual solutions while preserving their identity?

How we can achieve your goals together

We support non-profits in not only discussing these questions in theory, but also putting them into practice. From evaluating existing structures to developing suitable licensing and tenant models to migrating to modern environments, we deliver concepts that keep costs under control while leaving room for individual identity.

Conclusion

For small non-profits, Microsoft’s new strategy will change little. For large organizations, however, now is the right time to consciously manage their IT costs and invest in modern, future-proof solutions. Those who act in time can not only cushion the financial burden, but also seize the opportunity to modernize their own IT landscape in a sustainable manner.

Plan your next steps now

The new licensing models require clear decisions. We help you choose the right plans, distribute costs fairly, and modernize your IT sustainably.

Contact us