For years, not-for-profits have benefited from something that felt — well, quietly generous. Microsoft’s Business Premium licences, offered free of charge to registered charities, helped countless organisations access the tools they needed to work efficiently and securely.
It’s easy to forget what a difference that made. Full desktop versions of Word, Excel, and Outlook. Device management via Intune. Security tools that protected sensitive data. All without cutting into already stretched budgets.
But that’s now changing. Microsoft has announced it’s ending those free Business Premium licences. In their place? Free Business Basic licences — up to 300 of them — and a discount (up to 75%) on premium plans like Business Premium if you still need them.
On the surface, that might sound manageable. But the details matter. For many organisations, this shift is likely to be more than just an administrative update — it could impact the way they work, how secure their systems are, and, for some, how much they can do with what they can afford.
What’s Actually Changing?
Let’s break it down.
If your charity was using the free Business Premium plan from Microsoft — you know, the one that included the full desktop versions of Word, Excel, and PowerPoint, plus Intune and conditional access policies — that plan is going away. Completely.
In its place, you’ll get up to 300 free Business Basic licences. They still include Teams, Exchange email, and access to web versions of Word, Excel, and so on. But they don’t include the desktop apps or any of the advanced management and security features.
Now, Microsoft is offering up to 75% off the regular price of Business Premium if you want to keep it. Which is helpful, yes — but it’s still a cost. For organisations used to budgeting for “free,” even a heavily discounted bill can be difficult to absorb.
What’s the Difference Between Basic and Premium?
At first glance, the names might not sound all that different. But in practice, the gap between Business Basic and Business Premium is significant.
Basic is very much a cloud-first, web-only experience. You get Teams, you get email, you get access to the Office apps in your browser. But there’s no installable version of Word or Excel. And perhaps more importantly, there’s no Intune. No device management. No Microsoft Defender for Business. No way to remotely wipe a lost laptop.
That might be fine for a small group of occasional users or volunteers. But for frontline staff, for those working remotely, or for anyone handling sensitive personal data — it might not be enough.
And here’s the tricky bit. Once you downgrade from Premium to Basic, you might not immediately feel the difference. Things might seem fine. Until, one day, they’re not.
What Could This Mean for Your Security?
Security isn’t always about what’s visible. It’s often about what quietly prevents problems from happening in the first place. Losing access to Intune, for instance, means you can’t enforce device policies or wipe a stolen device. It means staff could access organisational data from unmanaged, unsecured laptops without any oversight.
And that introduces risk — especially for organisations handling beneficiary data, health records, or donor payment details. These aren’t just theoretical concerns. GDPR and other regulations don’t disappear because a charity budget is tight. If anything, the stakes are higher!
It’s also worth considering phishing. Without the advanced protection offered by Business Premium, your users may be more exposed to sophisticated email threats — especially with how convincing some attacks have become.
I don’t say this to sound alarmist. But it’s worth being realistic. For some non-profits, a shift to Business Basic might be entirely manageable. For others, it may quietly open cracks in their security posture that don’t reveal themselves until it’s too late.
Let’s Talk About Cost
Even with the discount, Business Premium still has a price. Even a small charity with 10 users might need to pay an extra £500 a year – and for a larger one with 30 or 40 staff — well, you get the picture.
And of course, that’s money that wasn’t budgeted for. It might mean shifting funds around. It might mean making decisions about who truly needs Premium and who can use Basic instead. Those decisions can be difficult.
But they’re also an opportunity to get clearer on how your tech is being used. Who actually uses desktop apps? Who needs device security or advanced email protection? Who’s working from shared PCs? This shift might force those conversations, but they can lead to smarter, more tailored setups too.
What Should You Do Now?
If you haven’t already, now is the time to audit your current Microsoft 365 setup. Who’s using what, and how? Which features are critical? What risks could be introduced by downgrading?
There’s no one-size-fits-all answer. Some organisations may be able to switch entirely to Business Basic with minimal disruption. Others may decide to keep Premium for key staff and use Basic for volunteers or temporary workers.
And then there’s the timing. Microsoft hasn’t given an exceptionally long grace period. So if you don’t act, there’s a risk that your licences may automatically downgrade — and with them, your features.
It’s also worth talking to an MSP or IT partner who understands the non-profit space. Sometimes, a short conversation can save hours of headaches down the line — or worse, a costly mistake.
Final Thoughts
Changes like this are never fun. Especially when they come with short notice and force non-profits to make complex decisions quickly. But you’re not alone, and this isn’t unmanageable. It’s just something that needs to be looked at with care — and ideally, sooner rather than later.
If you’re not sure what the best path forward looks like for your organisation, our team at Carden IT Services can help. We work closely with charities and not-for-profits to manage their licensing, protect their data, and keep things running smoothly — all while being mindful of budget constraints.
Microsoft may have changed the rules, but you still have options. And with the right setup, you can make this transition without losing what matters most: your ability to do good work, securely and confidently.
