The short answer: Eligible UK charities can get Microsoft 365 Business Basic free for up to 300 users. Business Premium costs £4.20 and Business Standard £2.70 per user per month, about 75% below the normal business price. The old grant of free Business Premium licences ended in 2025, so charities that relied on it now pay the discounted price at renewal.
Last updated: 29 September 2026. Prices and terms checked against Microsoft’s UK nonprofit plans page and Microsoft for Nonprofits documentation on that date. Prices exclude VAT.
In this guide
- Microsoft 365 nonprofit prices in the UK
- What changed in 2025 and 2026
- The rules that come with the free grant
- Is your charity eligible?
- How to apply
- Which plan should a charity choose?
- Other Microsoft offers for nonprofits
- Frequently asked questions
How much does Microsoft 365 cost a UK charity?
These are Microsoft’s current UK nonprofit prices, per user per month, on an annual subscription and excluding VAT, compared with the price a business pays.
| Plan | Nonprofit price | Normal business price | What it is for |
|---|---|---|---|
| Microsoft 365 Business Basic | Free (grant, up to 300 users) | £5.40 | Email, Teams, 1TB OneDrive, web and mobile Office apps |
| Microsoft 365 Business Standard | £2.70 | £10.80 | Adds the desktop Office apps |
| Microsoft 365 Business Premium | £4.20 | £16.90 | Adds device management, Defender and data protection |
| Microsoft 365 E3 | £8.40 | £33.50 | Enterprise plan for larger charities |
| Microsoft 365 E5 | £20.60 | £51.60 | Enterprise plan with advanced security and compliance |
Microsoft advertises nonprofit discounts of up to 75% on Business Premium and Business Standard, and at current UK prices both work out at 75% below the business price. Business plans, including the discounted ones, are designed for organisations of up to 300 users. E3 and E5 have no such limit.
What changed in 2025 and 2026?
Microsoft withdrew its most generous charity offers in 2025. According to Microsoft’s nonprofit updates log:
- The Microsoft 365 Business Premium grant and the Office 365 E1 grant were discontinued for renewals on or after 1 July 2025. Existing grant licences expire at the charity’s next renewal date and do not renew.
- The Business Basic grant continues, free for up to 300 users.
- Discounted plans replace the grant. Charities that had free Business Premium now move to the £4.20 discounted price, or down to the free Basic grant.
Then on 1 July 2026 Microsoft raised commercial Microsoft 365 prices. Microsoft’s pricing FAQ says nonprofit pricing is adjusted in line with commercial pricing, with the nonprofit discount set at 60 to 75%. The UK prices in the table above are the current ones.
If your charity’s licences were on the old Premium grant, check your renewal date now. When the grant licences lapse, users lose access to the Premium features and desktop apps unless you have moved them to a paid or granted plan first.
What rules come with the free grant?
The free and discounted licences come with conditions, set out on Microsoft’s UK nonprofit page:
- Grant licences are for paid staff and unpaid executive staff who lead the organisation. Discounted licences can be used for staff and volunteers.
- Use them or risk losing them. Microsoft expects at least 85% of assigned grant licences to be actively used, and can withhold future grants if usage falls below that.
Is your charity eligible?
Microsoft’s eligibility criteria require a nonprofit or non-governmental organisation with recognised legal status in its country, operating on a not-for-profit basis with a mission that benefits the community. Microsoft excludes:
- Government organisations and agencies.
- Schools, colleges, universities and other formal educational institutions (these have separate education pricing).
- Healthcare organisations, other than specific categories in the United States.
- Professional and trade associations, political organisations, trade unions and fraternal organisations.
- Professional and semi-professional sports organisations, and financial institutions.
Public libraries and public museums are eligible. In the UK, the simplest evidence is registration with the Charity Commission for England and Wales, the Office of the Scottish Charity Regulator or the Charity Commission for Northern Ireland. Charity Digital notes that smaller organisations recognised by HMRC as charitable can also qualify, while community interest companies and social enterprises generally do not.
How do you apply for Microsoft’s nonprofit offers?
You apply through Microsoft’s Nonprofit Hub. Microsoft’s registration guide sets out the process:
- Go to nonprofit.microsoft.com and choose to apply, signing in with a Microsoft account you will keep, ideally your organisation’s admin account.
- Enter your organisation’s legal name, charity registration number, address and a public website. Microsoft asks for a phone number that is not VoIP-only.
- Agree to Microsoft’s nonprofit compliance terms.
- Wait for validation. Microsoft’s documentation says this takes up to 3 days, while its FAQ allows up to 7 business days.
- Once approved, activate the Business Basic grant and buy any discounted licences from the Nonprofit Hub or through a Microsoft partner.
To avoid delays, make sure the name on your website matches the charity register exactly, double-check the registration number, and apply from an organisational account rather than a personal one.
Which plan should a charity choose?
Match the plan to the data each person handles. This is the approach we take with the community organisations we support:
- Free Business Basic for most volunteers and light users. They get a proper organisational email address, Teams and shared files in the browser, at no cost.
- Business Premium for anyone handling beneficiary, donor or safeguarding data. At £4.20 it adds the controls that stop that data leaking: device management, Conditional Access, Defender for Business and data loss prevention. For most charities this is the best value security spend available.
- Business Standard only if someone needs desktop apps but no sensitive data. At £2.70 it sits between the two, but the extra £1.50 for Premium usually pays for itself in protection.
Charities are targets too. The government’s Cyber Security Breaches Survey 2025/2026 found that 28% of charities identified a breach or attack in the previous 12 months, and only 19% had a formal incident response plan.
We moved Arundel Museum onto Microsoft 365 and took over its broadband and phones after a previous provider left costly problems behind. If you would like the same for your organisation, see our IT support for charities.
What other Microsoft offers are there for nonprofits?
Microsoft publishes these offers in US dollars, and availability varies by country:
- Azure credit: up to $2,000 a year of Azure credit, which does not roll over.
- Microsoft 365 Copilot: a 15% nonprofit discount on the Copilot add-on. Copilot Chat is included in the Microsoft 365 plans at no extra cost.
- Volunteers on enterprise plans: for each E3 or E5 licence, Microsoft allows up to five additional F3 licences for volunteers.
- Dynamics 365 and the Power Platform: discounted CRM and app-building licences. See Microsoft’s offers for nonprofits.
Frequently asked questions
Is Microsoft 365 free for charities in the UK?
Microsoft 365 Business Basic is free for eligible charities for up to 300 users. It includes email, Teams, 1TB of OneDrive and the web and mobile Office apps. The plans with desktop apps and advanced security are discounted rather than free.
How much is Microsoft 365 Business Premium for charities?
£4.20 per user per month in the UK, on an annual subscription and excluding VAT. Businesses pay £16.90.
Can charities still get 10 free Business Premium licences?
No. Microsoft discontinued the Business Premium grant for renewals from 1 July 2025. Existing grant licences expire at the next renewal, after which Premium is available at the discounted price.
Who is eligible for Microsoft’s nonprofit offers in the UK?
Organisations with recognised charitable status, typically registered with the Charity Commission, OSCR or the Charity Commission for Northern Ireland. Government bodies, schools and universities, most healthcare organisations, trade associations and political organisations are not eligible.
How long does Microsoft nonprofit verification take?
Microsoft says up to 3 days in its documentation and up to 7 business days in its FAQ. Making sure your details match the charity register exactly helps avoid delays.
Can volunteers use the free Microsoft 365 licences?
The free grant licences are for paid staff and unpaid executive leaders. Volunteers can use discounted licences, and enterprise customers can add F3 licences for volunteers.
Sources
- Microsoft UK: Microsoft 365 nonprofit business plans and pricing
- Microsoft UK: Microsoft 365 nonprofit enterprise plans and pricing
- Microsoft Learn: Microsoft for Nonprofits updates
- Microsoft Learn: nonprofit eligibility
- Microsoft Learn: nonprofit registration and validation
- Microsoft: nonprofit FAQ
- Microsoft Licensing: 2026 pricing update FAQ
- GOV.UK: Cyber Security Breaches Survey 2025/2026
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