If you’re a not-for-profit organisation relying on Microsoft 365’s donated licensing, it’s time to take a closer look at what’s changing – and how it could impact your team, budget, and cybersecurity posture.

As of 1 July 2025, Microsoft is retiring free grant-based plans for Office 365 E1 and Microsoft 365 Business Premium. These were widely used by charities across Australia, including many here in South West Victoria.

At Gunners Business Solutions, we’re helping local NFPs prepare for the shift and make informed decisions. Here’s what’s changing – and what to do next.

So whats changing for Nonprofits?

No More Free E1 or Business Premium Licences

Microsoft will no longer offer:

• Office 365 E1 (free grant)
• Microsoft 365 Business Premium (free grant – 10 seats)

Any charities using these plans will lose access at their next renewal after 1 July 2025. If your renewal falls before July 2025, you’ll keep the plan until the following year. But if your renewal happens later in the year (e.g. October), your free access will end then.

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You’ll get 90 days’ notice from Microsoft, and another 90 days of data access after expiry.

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Whats staying?

• Microsoft 365 Business Basic remains free for up to 300 users
• Microsoft still offers up to 75% discounts on Business Premium and E1 plans
• Larger charities with Enterprise Agreements may still qualify for free E1 plans (with 250 paid seats)

So while free options are more limited, heavily discounted plans are still available.

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What are your options as a regional non-profit organisation?

You’ve got a few paths forward depending on your needs:

Microsoft 365 Business Basic (Free)

• Cloud-based only (no desktop Office apps)
• Includes Teams, Outlook (web/mobile), SharePoint & OneDrive
• Best for light users and admin teams
• Great for volunteers or part-time staff

Microsoft 365 Business Premium (Discounted)

• Includes desktop Office apps (Word, Excel, Outlook etc.)
• Comes with enterprise-grade security tools
• Full mobile device management and compliance features
• Ideal for teams managing sensitive data (e.g. finance, HR, client services)

Office 365 E1 (Discounted)

• Like Business Basic but allows for more users
• Lacks the extra security and device controls found in Premium

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Why Business Premium Is Worth Considering

We know budgets are tight in the NFP space—but Business Premium adds real value, especially when it comes to security.

Cyber threats don’t care how big or small your organisation is. In fact, 68% of charities report at least one data breach in the past three years.

Business Premium gives you:

• Microsoft Defender – to protect devices from ransomware and malware
• Email protection – blocks phishing and suspicious links
• Conditional Access & MFA – to control who can log in, where, and from what device
• Device management via Intune – great for mobile staff or BYO devices
• Data loss prevention – stops sensitive data from leaking via email or Teams

Think of it like locking up your office after hours – but for your digital world.

Where Does AI Fit?

Microsoft Copilot (AI) is already becoming a key part of Microsoft 365. To use it safely, your organisation needs solid security foundations in place.

Business Premium is the only plan that fully supports this. It ensures the sensitive donor and client data Copilot accesses is protected under enterprise-grade security policies.

How GBS Can Help

At Gunners Business Solutions, we’re already working with charities across the region to help navigate these changes. Here’s how we can support you:

• Review your current Microsoft licences
• Identify which staff should be on which plan
• Handle transitions from old grants to new plans
• Implement security best practices
• Provide ongoing IT support tailored for nonprofits

Our team knows the challenges faced by regional NFPs. Whether you're based in Warrnambool, Portland, Hamilton or Colac—we can guide you through the change with no jargon and no stress.

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