Microsoft is pulling the free MS365 Business Premium licenses granted to non-profits and replacing them with Business Basic and discounts for its other services.

According to Microsoft, which reported net income of $25.8 billion in its earnings release for FY25 Q3 ended March 31, 2025, “Our goal in Tech for Social Impact (TSI) is to ensure nonprofits can benefit from the industry leading solutions that are critical to ensuring the highest level of organizational security and productivity.”

As such, it is generously removing the ten licenses for Microsoft 365 Business Premium that it previously granted to non-profits. The replacement? “We are transitioning to provide up to 300 licenses of Microsoft 365 Business Basic and discounts of up to 75 percent on many Microsoft 365 offers to nonprofits.”

So if a non-profit wants to keep using Business Premium, which includes desktop versions of Microsoft’s Office applications, and management services such as Intune, they must start paying once their subscription is up. The discount – up to 75 percent – is substantial, but it will still be a jump for organizations which, by their nature, sometimes have to watch every penny.

Business Basic lacks many of the features of Business Premium. The desktop versions of the Office applications are gone, replaced by web apps. Teams is still there, but many other services, such as Intune, are absent.