Microsoft 365 for Charities Pricing: What UK Charities Pay

Key Takeaways

• Business Basic is the grant plan, up to 300 licences, as at October 2026.
• Business Premium is discounted by 75 percent, not free.
• E3 and E5 nonprofit staff pricing was shown in US dollars; sterling prices were not verified.
• Keep 85 percent active usage of granted licences to protect future grants.
• Migration, security, backup, support and training often cost more than licences.

Microsoft 365 for charities pricing depends on the plan. As at October 2026, Microsoft's published position is that eligible nonprofits can receive up to 300 Microsoft 365 Business Basic licences as a grant, while Business Premium is discounted by 75 percent rather than donated. Most other plans are discounted, not free.

This guide sets out what we could confirm on Microsoft's own pages, what we could not, and where the real cost of running Microsoft 365 sits for a UK charity. Licences are often the smallest line. Migration, security, support and training usually cost more over three years.

It is written for charity trustees, finance leads and the person who ends up managing IT alongside another job. It is deliberately different from our general overview of Microsoft for charities in the UK and our guide to Microsoft non-profit programmes: here the focus is the price, the plan choice and the budget around it.

What do UK charities pay for Microsoft 365?

UK charities pay nothing for the grant plan and a discounted rate for everything else, subject to eligibility. The detail below is taken from Microsoft's UK nonprofit Microsoft 365 page, the Microsoft nonprofit FAQ and the Microsoft partner notice on the Business Premium and Office 365 E1 grant discontinuation, all opened in October 2026.

Two points matter before you budget. First, the page we opened showed US dollar figures only. We could not verify equivalent sterling prices, so any sterling number you see elsewhere should be treated as a quote from a reseller, not a Microsoft published price. Second, the pages carry no visible publication date, so confirm current pricing in your admin centre or with your partner before committing.

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Which Microsoft 365 plans are free for charities?

Only Business Basic is described as a grant, and only up to 300 licences. Microsoft's Microsoft nonprofit FAQ calls it the primary cloud grant offer, while noting that specific seat limits depend on the offer.

The Microsoft partner notice on the Business Premium and Office 365 E1 grant discontinuation, last modified on 7 August 2025, states that the Business Premium and Office 365 E1 grants are being discontinued and that nonprofits can receive up to 300 Business Basic licences instead. Many offers, including Business Premium and E1, are discounted by as much as 75 percent.

What does Business Basic include?

Business Basic gives web and mobile Office apps, Exchange email, Teams, SharePoint and OneDrive. It does not include the desktop Office applications and does not include the security and device management features of Business Premium. For a charity that mainly needs email, Teams and file sharing, that can be enough. For a charity that handles safeguarding records, donor data or grant-funder information on laptops, it often is not.

Does the grant apply to everyone in the charity?

No. Microsoft states that grants are limited to paid employees and unpaid executive leadership. Discounts can extend to staff and volunteers. Programme participants, members and donors are not eligible, and licences cannot be shared, transferred, rented or resold.

Are there nonprofit grants that are free in other ways?

Microsoft 365 Copilot Chat is described as available at no additional cost with an eligible Microsoft 365 subscription, and Teams Audio Conferencing is a no-cost add-on for E3 and E5. These are inclusions on paid plans, not free plans.

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How much does Microsoft 365 Business Premium cost for a charity?

Business Premium costs 75 percent less than the standard commercial price for an eligible nonprofit, which means you pay 25 percent of the list price. Microsoft states the 75 percent discount on Microsoft's UK nonprofit Microsoft 365 page. We did not find a verified sterling figure, so the working below uses a stated assumption.

The Business Premium offer matters because it adds device management, advanced threat protection and conditional access to Basic-style collaboration. If you are weighing it against general cybersecurity good practice, this is the plan that makes several of those controls available without buying separate products.

Because the former full grant was discontinued, charities that previously held donated Premium licences face a decision at renewal. Independent commentary indicated that renewals from 1 July 2025 moved to the discounted paid rate, with an annual term. We rely on Microsoft's own notice for the discontinuation, and recommend you read your renewal date and terms directly in the Microsoft admin centre.

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What do Microsoft 365 E3 and E5 cost for nonprofits?

On the page we opened, nonprofit staff pricing is $9.75 per user per month for E3 and $24.00 per user per month for E5, paid yearly with an annual commitment. This comes from Microsoft's nonprofit plans and pricing page, which showed US dollar prices.

That page also states that E3 and E5 allow up to five PCs or Macs, five tablets and five phones per user, with a 100 GB primary mailbox and a 1.5 TB archive. Eligibility checks can take up to seven business days.

Which charities should look at E3 or E5?

Larger charities with compliance duties, multiple sites or heavy data protection obligations. E5 adds advanced security and analytics. If you are considering data classification or retention, our explainer on Microsoft Purview shows what those controls do before you pay for them.

What is the volunteer F3 allowance?

For each licensed E3 or E5 seat, a nonprofit can receive up to five additional Microsoft 365 F3 seats for volunteers. It is tied to paid E3 or E5 seats and is not a free standalone grant.

What does Copilot cost for a charity?

Microsoft 365 Copilot carries a 15 percent nonprofit discount against a list price of $25.50 per user per month, paid yearly. Before buying, read our guide to Microsoft 365 Copilot, because permissions and data hygiene need fixing first.

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Who is eligible for Microsoft 365 charity pricing?

Eligibility requires recognised charitable status in your country and Microsoft's approval, which it makes at its sole discretion. The Microsoft nonprofit eligibility page sets out the general rules, and we opened it in October 2026.

• Housing associations are listed as ineligible in the UK.
• Excluded categories include government bodies, schools and universities, hospitals and health systems, financial institutions, professional or trade associations, sports organisations and political organisations.
• The person registering must be an employee or strategic volunteer. Third-party IT providers cannot register on your behalf.
• Verification can take up to seven business days.

The page did not name the UK registration bodies. If your charity is registered with the Charity Commission, the Office of the Scottish Charity Regulator or the Charity Commission for Northern Ireland, check Microsoft's current UK guidance or its support form before assuming acceptance.

What is the 85 percent active usage rule?

Microsoft requires nonprofits to keep active usage at 85 percent or more of granted assigned licences. A user counts as active if they have used a Microsoft 365 cloud service in the past 90 days. Missing the target can risk disqualification from future grants, so unused seats should be removed, not left assigned.

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What does Microsoft 365 really cost a charity beyond licences?

Over three years, licences are frequently the smallest cost for a charity on the grant plan, because the surrounding work is paid for in staff time or supplier fees. The categories below are the ones we see budgeted poorly. We give no amounts because they depend on size, data volume and starting point.

Do charities need a Microsoft 365 migration?

Only if they are moving from another platform, such as a legacy server, Google Workspace or consumer email. Our cloud migration services and data migration services cover that work. Underestimating file structure clean-up is the most common cause of overrun.

What does support look like for a small charity?

A defined route to a named provider beats informal favours. Microsoft 365 support typically covers user management, licence assignment, tenant settings and escalation. If you are deciding between a paid provider and one internal person, see our comparison of outsourced and in-house IT.

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Which Microsoft 365 plan should a UK charity choose?

Choose the cheapest plan that meets your security and compliance needs, not the cheapest plan on the price list. A short decision sequence works better than comparing features.

1. Count eligible people. Paid staff and unpaid executive leadership qualify for grants. Volunteers need discounted or F3 licences.
2. List the data you hold. Safeguarding, health, donor and beneficiary data usually justify device and identity controls.
3. Decide how people connect. Personal phones and shared laptops need managed access.
4. Check funder and insurer expectations. Some require Cyber Essentials, which depends on correct configuration.
5. Price three years, not one. Include support, backup and training.

When is Business Basic enough?

When staff mainly use email, Teams and browser-based Office, hold little sensitive data and have a managed route for security settings added elsewhere. The grant limit of 300 licences will suit most small and medium charities.

When is Business Premium worth paying for?

When you need managed devices, stronger threat protection and conditional access. Our Microsoft security information article explains the sign-in controls, and Intune device management explains how devices are enforced. A mixed estate is possible: grant Basic for volunteers and light users, discounted Premium for staff handling sensitive records.

Can a charity mix licence types?

Yes, within one tenant, and many do. Assign by role, document the reason, and review twice a year. Keep a simple register showing who holds which licence, why, and when it was last checked, because that record answers most questions from trustees, auditors and insurers.

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How do charities keep Microsoft 365 secure and compliant?

Switch on multi-factor authentication for every account, restrict administrator rights, keep devices updated and take independent backups. These controls matter more than the licence name. Our Cyber Essentials support helps charities show that those basics are in place, and the Cyber Essentials certification guide explains the scheme.

• Require MFA for staff, volunteers and administrators.
• Use separate admin accounts without mailboxes.
• Remove leavers promptly and reclaim licences.
• Back up email and files outside Microsoft's service.
• Train staff on phishing; see our guide on what phishing is and how to prevent it.

Is Microsoft 365 UK GDPR compliant for charities?

The platform provides tools, but the charity remains responsible as data controller for how it configures them and who it gives access. Retention settings, sharing permissions and access reviews are the practical work. Our small organisation cyber risk guide covers the typical exposure.

Who should manage the tenant?

Someone accountable, with a deputy. Where that is not possible, a managed IT support provider can hold the admin role under a documented agreement. Our IT support handover checklist explains what to ask for, so you retain control of your tenant. Whoever administers it, the charity should hold the global administrator details in a sealed record that trustees can reach if the main contact leaves.

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How do you apply for Microsoft 365 charity pricing?

You register your charity with Microsoft's nonprofit programme, wait for verification, then claim offers through the Microsoft admin centre or a partner. Verification can take up to seven business days, so allow for it before a renewal or migration date.

1. Gather your registration details. Have your charity's registered name, number and a named contact ready.
2. Register as an employee or strategic volunteer. A third-party provider cannot do this for you.
3. Wait for approval. Do not move users until you have it.
4. Select offers. Claim the grant for eligible staff, then buy discounted plans only for the roles that need them.
5. Record the renewal date. Diarise it six weeks ahead so you can review seats and terms.

What are the most common mistakes?

• Assuming a previous donated plan will carry on unchanged at renewal.
• Assigning licences to volunteers who are not covered by the grant.
• Leaving leavers licensed, which drags down the active usage figure.
• Treating the nonprofit tenant as owned by whoever set it up, rather than by the charity.
• Buying Copilot before fixing file permissions.

None of these is hard to avoid, but each one costs money or access when it is found late. A licence review twice a year, with a named owner, catches nearly all of them.

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What is the bottom line on Microsoft 365 for charities pricing?

The headline for Microsoft 365 for charities pricing as at October 2026 is simple: up to 300 Business Basic licences as a grant, 75 percent off Business Premium, nonprofit staff pricing for E3 and E5, and a 15 percent discount on Copilot. Everything else, including sterling prices, needs a current quote. Treat licences as the starting line of the budget, not the whole of it.

1. Confirm eligibility and register in your own name.
2. Match plans to roles, using the grant where it fits.
3. Remove unused licences to stay above 85 percent active usage.
4. Budget for migration, security, backup, support and training.
5. Review the tenant twice a year.

For help choosing a plan or running your tenant, talk to NetMonkeys. If you are comparing suppliers first, our guide to choosing an IT support company sets out the questions worth asking.

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Frequently Asked Questions (FAQs)

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