Microsoft Nonprofit Licensing for UK Charities
Microsoft offers eligible UK charities a mixture of free and discounted Microsoft 365 licences. The right option depends on your charitable status, who needs access, whether desktop applications are required and how your current licences are being used.
SAM UK can review your organisation's requirements, explain the available licensing routes and provide a straightforward quote for the licences that are not covered by a free grant.
What Microsoft nonprofit licensing is available in the UK?
Microsoft 365 Business Basic may remain available as a free grant for eligible organisations. Fuller Microsoft 365 plans — Business Standard, Business Premium and the Enterprise plans — are normally offered as paid licences at nonprofit pricing. Both programme eligibility (the organisation) and user eligibility (the individual) are checked separately. Microsoft confirms final eligibility.
Who may qualify for Microsoft nonprofit licensing?
- Registered charities in England, Wales, Scotland and Northern Ireland
- Qualifying charitable organisations and eligible community organisations
- Organisations with recognised charitable or HMRC-exempt status
- Organisations with a genuine community-benefit mission
Microsoft applies its own eligibility rules and makes the final decision. Charity Commission registration alone does not guarantee acceptance.
Who normally uses a different licensing programme?
- Schools, colleges and universities — usually Microsoft education licensing.
- Commercial businesses — see commercial software licensing.
- Government bodies, political organisations and trade associations are generally excluded from the nonprofit programme.
Free and discounted Microsoft 365 options for charities
A summary of the main Microsoft 365 plans a UK charity is likely to consider. Availability and terms are set by Microsoft and confirmed at quotation.
- Licensing basis
- Free grant for eligible organisations, up to 300 users
- Office applications
- Browser and mobile Office apps
- Capabilities
- Teams, Outlook on the web, SharePoint, OneDrive (subject to Microsoft's current service terms)
- Eligible users
- Paid staff and unpaid executive leaders. Volunteers not eligible for the free grant.
- Active-use rule
- 85% active-use requirement applies
- Best suited to
- Charities whose users mainly work in the browser or on mobile
- Licensing basis
- Nonprofit pricing subject to eligibility — quote required
- Office applications
- Desktop Office apps plus browser and mobile
- Capabilities
- Teams, Exchange, SharePoint, OneDrive, standard business features
- Eligible users
- Any assigned licensed user, including volunteers on paid licences
- Active-use rule
- Does not apply in the same way to paid discounted licences
- Best suited to
- Charities that need desktop Office on Windows or Mac
- Licensing basis
- Paid nonprofit pricing (no longer a free grant) — quote required
- Office applications
- Desktop Office apps plus browser and mobile
- Capabilities
- Adds device management and security controls such as Intune and Defender for Business
- Eligible users
- Any assigned licensed user
- Active-use rule
- Does not apply in the same way to paid discounted licences
- Best suited to
- Charities that need managed devices and stronger security controls
- Licensing basis
- Paid nonprofit pricing — quote required
- Office applications
- Desktop Office apps plus enterprise services
- Capabilities
- Broader enterprise, security, identity and compliance capabilities
- Eligible users
- Any assigned licensed user
- Active-use rule
- Does not apply in the same way to paid discounted licences
- Best suited to
- Larger charities with wider security or compliance requirements
Microsoft can change programme terms. Current availability, entitlements and nonprofit pricing are confirmed during quotation.
What changed for charities in 2025?
- The donated grant of 10 Microsoft 365 Business Premium licences ended on 1 July 2025.
- The donated Office 365 E1 grant was also discontinued.
- Microsoft 365 Business Basic remains the principal free grant for eligible charities.
- Business Standard, Business Premium and Enterprise plans remain available as paid licences at nonprofit pricing, subject to eligibility.
- Microsoft nonprofit eligibility validation now runs through Microsoft's own nonprofit portal.
Last reviewed: 22 July 2026
Which people in a charity can receive nonprofit licences?
- Free grants
- Potentially eligible
- Paid discounted
- Yes
- Notes
- Standard licensed users under the programme rules.
- Free grants
- Potentially eligible
- Paid discounted
- Yes
- Notes
- Board members and trustees performing genuine leadership roles.
- Free grants
- Not eligible
- Paid discounted
- Yes
- Notes
- Cannot receive free granted licences; may use paid discounted licences.
- Free grants
- Not automatically eligible
- Paid discounted
- Case-by-case
- Notes
- Being a member of the charity does not by itself qualify someone for a licence.
- Free grants
- Not eligible
- Paid discounted
- Not intended
- Notes
- A donor relationship does not create licensing eligibility.
- Free grants
- Not eligible
- Paid discounted
- Not intended
- Notes
- People supported by the charity are not licensed users of its staff tenancy.
Eligibility depends on Microsoft's current rules and the individual's real role in the organisation.
How the 85% active-use requirement works
- The 85% rule applies to donated or granted Microsoft licences.
- At least 85% of assigned granted licences must show active use under Microsoft's measurement rules, over a rolling period defined by Microsoft.
- Paid discounted licences are not subject to the same grant-utilisation rule in the same way.
- Where granted licences are unused, charities should remove or reassign them rather than leave them dormant.
- Falling below Microsoft's required use level may affect continued access to future grants.
SAM UK can discuss current quantities and usage with you before renewal so you understand your position.
How to obtain Microsoft nonprofit licensing
- Step 1
Confirm your organisation's charitable status and mission.
- Step 2
Register or confirm eligibility through Microsoft's nonprofit portal.
- Step 3
Identify which users require licences — staff, executive leaders or volunteers.
- Step 4
Decide who needs browser-only apps and who needs desktop apps, security or device management.
- Step 5
Send SAM UK the relevant details for a current licensing quote and renewal plan.
Microsoft confirms programme eligibility. SAM UK provides licensing guidance and quotation support. No fixed price is confirmed until requirements and current programme terms are checked.
What we need to prepare your licensing quote
- Charity name
- Charity registration number or evidence of qualifying status
- UK nation of registration
- Approximate number of paid staff
- Number of unpaid executive leaders
- Volunteers who require licences
- Current Microsoft products and licence quantities
- Whether users need desktop Office applications
- Device management or security requirements
- Current supplier or agreement (if relevant)
- Renewal date, if known
- Any planned changes in staff or volunteer numbers
Not every field is mandatory — send what you have.
Straightforward licensing and renewal support
A named contact who understands the current Microsoft nonprofit rules and can talk through the options with you.
Help interpreting the available licence options, so you can separate what remains free from the paid discounted licences your charity actually needs.
A quote based on your actual user groups and requirements — paid staff, unpaid executive leaders and volunteers assessed separately.
Renewal support that reviews your existing Microsoft licensing position rather than leaving your charity to interpret Microsoft's programme changes alone. SAM UK supports good licence management; Microsoft decides eligibility.
Microsoft nonprofit licensing FAQs
Is every registered UK charity automatically eligible?
No. Registration or recognised charitable status is important, but Microsoft applies its own eligibility criteria and makes the final decision.
Is Microsoft 365 still free for charities?
Business Basic may remain available as a free grant for up to 300 eligible users. Business Premium and the former Office 365 E1 donation are no longer free grants.
Can volunteers receive free Microsoft nonprofit licences?
Volunteers are not eligible for free granted licences under the approved programme rules. They may be covered by paid discounted licences.
Does the 85% usage rule apply to every nonprofit licence?
It applies to donated or granted licences, not in the same way to paid discounted licences.
Does TechSoup approve Microsoft nonprofit eligibility?
Microsoft now validates eligibility through its own nonprofit portal. TechSoup is not the current Microsoft eligibility validator.
Is Northern Ireland covered by the UK nonprofit programme?
Eligible organisations in Northern Ireland can apply under the UK route, subject to Microsoft's eligibility assessment.
Can SAM UK review our current Microsoft licences before renewal?
Yes. Send us your current agreement, quantities and renewal date and we will review the relevant options with you before renewal.
Do schools operated by charities use nonprofit or education licensing?
Accredited educational institutions normally use Microsoft education licensing. Organisations with mixed activities may require case-by-case review.
Ask SAM UK to review your charity's requirements
Send us your charity details, current Microsoft licensing information and approximate user numbers. We will review the relevant licensing options and come back to you with the information needed for a current quote.
Prefer to talk? Contact SAM UK.
- Microsoft nonprofit eligibility guidance
- Microsoft nonprofit programme FAQ
- Microsoft nonprofit portal
- UK Charity Commission
Microsoft programme information reviewed against Microsoft's nonprofit eligibility and FAQ guidance. Programme availability and terms can change.