Updates: Microsoft Free Nonprofit License Renewal Updates pt 2 with Steve Longenecker

NOTE: The Microsoft policy on the end of their donation program for the free and discounted Microsoft Office 365 Business Premium and E1 licenses for qualified nonprofits is shifting frequently, and we are working to keep you updated. Please check for the most recent blog or podcast from us to ensure you have the most recent update.

This podcast provides updates to our episode from June 13th about the changes to Microsoft's donation program for nonprofit licenses. The active date of July 1st has now passed and we are learning more about Microsoft's approach to rolling over or just canceling existing licenses on their anniversary/renewal date.

Steve Longenecker, Community IT Director of IT Consulting, explains our updated understanding and advice on how to handle the changes to these licenses on your anniversary/renewal date. 

We will continue updating our podcasts and blog posts as soon as we learn more information from Microsoft and as we begin to learn best practices from our clients who are renewing and changing these licenses. Check back if you have questions not answered in this podcast, we'd love to hear from you! 

Some Key Takeaways:

• Check your licenses through your Microsoft admin portal
  • Check the renewal date
  • Check the license types -look for "donation" or "discounted"
• If you are currently using Microsoft 365 Business Premium licenses you were getting 10 free licenses. Any licenses over the first 10 that you are using are being billed at a discounted nonprofit annual rate. When your licenses renew after July 1, 2025, NONE of them will be free.
  • Microsoft says that your 10 free licenses will be automatically cancelled on your renewal date.
  • You don’t need to do anything to make this happen. However, we recommend actually cancelling your donation licenses about 2 weeks before your renewal date. That will ensure (we hope) that you don't get charged somehow if Microsoft automatically converts those free licenses to discounted licenses. 
  • About 2 weeks before your renewal/anniversary date, you should purchase the equivalent number of discounted Business Premium licenses. 
  • Your finance team needs to be aware that going forward, your payment method on record will be charged an annual renewal fee for ALL your Microsoft 365 Business Premium licenses. 
  • We recommend using the free licenses until about 2 weeks before your renewal date, then purchasing the equivalent number of licenses you need. Why pay for the new licenses early? Save your money until the free licenses are about to expire.

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