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Microsoft pricing increase: what it means for charities and not-for-profits

Greg Dean

July 6th, 2022

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From 1st September 2022, Microsoft is increasing its Office 365 and Microsoft 365 pricing for charity and non-profit organisations. Everything you need to know.

This is the first major pricing increase Microsoft has announced for Office 365 and Microsoft 365 (M365) since June 2011. Over the past decade, Microsoft has added numerous free features to Office 365 in addition to introducing M365, enabling organisations to work together more efficiently and securely by combining the best of Office, Windows, and Enterprise Mobility and Security.

Since the introduction of Microsoft 365 four years ago, 24 new apps have been added, including Microsoft Teams, Power Apps, Power BI, Yammer, OneDrive, and Planner. These applications have empowered organisations to be far more flexible, collaborate effectively, and increase their productivity.

1,400 new features and capabilities have also been added during this time for communication, security, and automation.

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New Microsoft pricing:

  • Microsoft 365 Business Basic will increase from $5 to $6 per user
  • Microsoft 365 Business Premium will increase from $20 to $22
  • Office 365 E1 will increase from $8 to $10
  • Office 365 E3 will increase from $20 to $23
  • Office 365 E5 will increase from $35 to $38
  • Microsoft 365 E3 will increase from $32 to $36

Got questions about the Microsoft pricing updates? Take a look at our Microsoft 365 March 2022 price increases FAQs.

On-demand webinar: Microsoft pricing and licensing updates for non-profits

Watch our free webinar now to find out how to transition your organisation to M365 and the importance of acting now before the pricing changes.

What’s covered in the webinar?

  • Why is Microsoft updating its prices now?
  • What does the new pricing look like for M365? Which SKUs or segments will be affected?
  • Updates on offers available specific to non-profit customers
  • Delivering new value with audio conferencing and Defender for Endpoint
  • Defender for Endpoint comparison

What does the new Microsoft pricing mean for non-profit and charity organisations?

In recent years, not-for-profits have relied heavily on their digital infrastructure to adapt to new ways of working and extend their limited resources. Microsoft as played a huge part in helping them achieve this both pre and post Covid-19, due to their ongoing commitment to the sector and their offers.

Find out more > How does Microsoft support charities?

With the increases set to be introduced in September 2022, as a non-profit organisation, you may wonder if it’s something you can afford to introduce or even continue with. For both new and existing customers, ‘early commit’ is not available to avoid the pricing increase, and new customers will not be affected until their next renewal on or after 1st September 2022.

Non-profit grants that are not affected by the new Microsoft pricing

  • 2,000 E1 licenses for NFP staff (via Enterprise Agreement)*
  • 10 licenses of M365 Business Premium (via CSP)
  • 300 licenses of M365 Business Basic (via CSP)
  • Office 365 F3 volunteer use benefit

Non-profit discounts of up to 75% will still apply to other M365 products.

*Available to eligible users meeting the requirements of 250 paid users for qualifying products.

Chat to a specialist now

We are available to support your organisation in planning ahead for the pricing increases and putting a budget in place. Whether you’re a new customer searching for a new way of working, or an existing customer, we ensure you continue to get the most from your M365 investment at a price point that works for you.

Book your free one-to-one consultation with our charities and housing specialist, Greg Dean to find out how to transition your organisation to Microsoft 365 and the importance of acting now before the pricing changes.

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