And for licenses that are themselves offered as grants, the pricing won’t be affected in September. Those nonprofits who are moving to the cloud and applying for grants can still lock in old subscription pricing meanwhile, before September 1. This was originally announced in October 2021 and is effective this month, April 2022.
Along with pricing changes, they’ve started a new cloud-first grant program and will no longer offer on-prem software grants to nonprofits. That transition to the cloud is something that Microsoft is incentivizing. On top of waiting for the commercial increases, they delayed the nonprofit increase by an additional six months after those ones in order to give nonprofit organizations enough time to transition to the cloud if they hadn’t yet. Microsoft held off during that time but has now expressed a feeling that the signs of economic recovery this year have made it acceptable to finally raise theirs. Other competitors have raised their prices over the last decade, including during the hardships of the Covid-19 pandemic.
Specifically for Business Premium, the following have been added over the years since the license was first introduced: Some of the big additions in recent years have been the Microsoft Teams app, greater automation & AI, and improved security tools. Why Are Prices Being Raised Now for Nonprofits?Īs Microsoft has pointed out, it has added 1,400+ features and 24 apps to its products over the last eleven years without any significant price increases. See how Microsoft’s solutions also offer capabilities unique to nonprofits. The upside is that all of these nonprofit prices are still a significant savings from commercial prices, most of them 75% less than their commercial counterparts. The Office 365 E1 and E3 subscriptions, though, are being raised the most at 25-28% more. Most of these increases are roughly in line with the commercial increases that other businesses saw in March-about 10-15% more than the previous cost.
Nonprofit organizations will see their subscription prices rise in September, with the amount depending on the SKU. The Amounts Microsoft Will Raise Prices for Nonprofits Here’s a breakdown of the price increases, the reasoning behind them, and why they’re being raised now. Now, effective September 1, 2022, Microsoft will raise prices for nonprofits as well, as the company recently announced.
In April Microsoft retired its perpetual software grants, with two notable exceptions. Microsoft will continue to provide non-profits with discounts of up to 75% on many other Microsoft 365 products.Īpril changes to non-profit software grant program These increases will apply globally with local market adjustments for certain regions. Pricing for Microsoft 365 E5, Microsoft Business Standard, and the Frontline SKUs are NOT changing.
The following products will have new pricing: 2000 Licenses of Office 365 E1 with an Enterprise agreement.300 Licenses of Microsoft 365 Business Basic.10 Licenses of Microsoft 365 Business Premium.It is important to note that the changes will not impact any non-profit offers available as grants including:
News of the price increase appeared in a March 29 update on a Partner Center page where Microsoft is posting rolling announcements of offers and price changes. Microsoft has increased the price of Office 365 and Windows 365 editions it offers to non-profit customers, effective September 1, 2022.