Earlier this year, there were the new price increases that were fairly significant changes to the pricing of the commercial M365 licenses and packages. Now it’s the turn of the non-profit sector.

What Is Being Impacted?

Both the charity and educational sectors have been eligible to get free licenses, depending upon their size. After a certain threshold, there is a cost to the subscriptions and licenses. In fact, in September of this year, there will be some price increases for those organizations that have to pay. But the good news is that these are not substantial, unlike those that impacted the commercial sector.

Here is a summary of what the increases will look like:

Product Present Price New Price Percentage Increase
Office 365 E1 $2.00 $2.50 25%
Office 365 E3 $4.50 $5.75 28%
Office 365 E5 $14.00 $15.20 9%
Microsoft 365 Business Premium $5.00 $5.50 10%
Microsoft 365 E3 $8.00 $9.00 12.50%

(SOURCE:  1).

Based on the table, the sharpest increases are for the E1 and E3 licenses, respectively. But it is interesting to note that there will be no increases for Microsoft Business Standard.

Why The Increases & When Will It Happen?

Microsoft has explained that the price increases for the nonprofit sector cover a number of new products and services that have been introduced. This includes well over 1,400 new features and over 24 new applications. Luckily, those nonprofits that already use M365 will not see these prices impact them until their current licenses expire.

But for those that are starting out as new customers, the price changes will take immediate effect in September. But the good news is that the other benefits that are also offered to the nonprofits will not be impacted. This includes the following:

  • Free Azure credits worth up to $3,500.00;
  • Free M365 Business Basic licensing for up to 300 users
  • Free Microsoft 365 E1 for up to 2000 licenses for those nonprofits with over 300+ staff members;
  • Free 10 licenses for Microsoft Business Premium;
  • Free 5 licenses for Microsoft Dynamics Sales Enterprise;
  • Free 10 licenses for Microsoft Power Apps.


If you are a nonprofit and need help in determining how the price changes will impact you, contact us today at 503-726-5933. Ask for Mike or Basya.


  • https://www.chorus.co/resources/news/nonprofit-microsoft-365-price-increases-coming-september-2022