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Bytes - Smarter together

Important Update for Charities: Microsoft to Retire Business Premium and Office 365 E1 Grants

Friday 23rd May 2025

 
Nathan Miller
Microsoft Program Manager
Author
 
Georgia Moore
Public Sector Marketing Executive
Editor

Important Update for Charities: Microsoft to Retire Business Premium and Office 365 E1 Grants

Microsoft has announced a significant change that will impact many charitable organisations: the discontinuation of the Microsoft 365 Business Premium and Office 365 E1 grants. These changes will take effect at your next renewal date on or after 1st July 2025. Once that date arrives, your existing licences will expire.

This update affects both CSP (Cloud Solution Provider) and Direct with Microsoft customers. Customers on an Enterprise Agreement will not be affected.

 

Why Is Microsoft Making This Change?

Microsoft regularly reviews its grant offerings to ensure they remain relevant and effective. As part of a move to simplify and streamline its portfolio, the Business Premium and Office 365 E1 grants are being retired. Instead, Microsoft will now focus on offering:

  • Up to 300 granted licences of Microsoft 365 Business Basic

  • Discounts of up to 75% on many Microsoft 365 plans, including Business Premium and Office 365 E1

Please note, this change only applies to those currently on a grant offer.

 

What Are Your Options?

 

If You Have Fewer Than 300 Employees:

 

Microsoft will continue to support your organisation with:

  • Up to 300 granted licences of Microsoft 365 Business Basic

  • Discounts of up to 75% on other Microsoft 365 plans, including Business Premium and Office 365 E1

 

If You Have More Than 300 Employees:

 

  • You can enter into an Enterprise Agreement and receive up to 2,000 granted seats of Office 365 E1

  • However, Business Basic is not available under an Enterprise Agreement

  • If your organisation currently holds more than 300 E1 grants via CSP or Direct with Microsoft, we recommend contacting Bytes for tailored advice

 

Which Microsoft Plans Are Best for Charities?

As 98% of the charities Microsoft serves have fewer than 300 employees, the following plans are most likely to suit your needs:

Microsoft 365 Business Basic (Grant-Eligible)

Key Features:

  • Web and mobile versions of Office apps (Word, Excel, PowerPoint, Outlook)

  • 50 GB business-class email via Outlook

  • Microsoft Teams, SharePoint, and Bookings for collaboration and scheduling

  • 1 TB of OneDrive cloud storage per user

  • Access to 10+ additional business apps including Planner and Forms

Cost: Free for up to 300 licences

Microsoft 365 Business Premium (75% Discount)

Key Features:

  • All features included in Business Basic

  • Identity and access management for up to 300 users

  • Cyberthreat and device protection

  • Microsoft Loop, Clipchamp, Bookings, Planner, and Forms

  • 1 TB of OneDrive storage per user

Cost: Available at a 75% discounted rate for eligible charities

 

What Should You Do Next?

To avoid disruption and the potential loss of data, we strongly recommend working with Bytes to manage your transition ahead of your renewal.

Bytes is one of a small number of partners to have achieved all six Solutions Partner designations in the Microsoft AI Cloud Partner Programme. We are also able to support all Microsoft agreement types, making us ideally placed to help you navigate these changes smoothly.

We understand that this news may feel unwelcome — especially in the charitable sector where budgets are tight and demands are high.

At Bytes, we genuinely appreciate the incredible work you do, and we’re committed to helping you continue your mission without interruption. Let’s work together to ensure your digital tools are working just as hard as you are.

Reach out to us on tellmemore@bytes.co.uk.

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