The not-for-profit sector in Australia continues to navigate a terrain now governed by rapid technological change to serve greater demand and lower costs. According to the Department of Social Services, the nonprofit sector employs around one in ten Australians, an impact that rivals major industries like construction and retail trade. Moreover, there are 3.2 million volunteers who collectively contribute over 320 million hours annually across Australian charities, underscoring their profound societal value. The need to arm yourself with secure, reliable digital tools has never been more apparent in this fight.
Cyber threats to your security are increasing, putting resources under constant strain, which calls for finding a smarter defence against this in the name of protecting data. At BITS, we understand that technology can be a powerful enabler of impact for nonprofits. We have seen how tools like Microsoft 365, offered through grants and discounted plans, can strengthen operations, support digital transformation, and enhance service delivery. Whether it’s secure email systems, data storage, or advanced security features, Microsoft 365 offers real opportunities for growth and resilience.
This blog explores everything you need to know about Microsoft 365 licensing for Australian not-for-profits: who is eligible, what plans are available, how to apply, and the upcoming changes to free offers in 2025. The blog aims to inform you about your decision to use Microsoft 365 to protect your true mission and better serve your community.
Who’s Eligible for Microsoft Nonprofit Licensing in Australia?
To access Microsoft 365 nonprofit deals, an organisation must meet strict eligibility requirements. The core criteria include having a recognised legal not-for-profit or charitable status in Australia and operating on a not-for-profit basis with a mission that benefits the community. Specifically, this typically means the organisation is:
- Registered Charity or Public Benevolent Institution: e.g. listed with the Australian Charities and Not-for-profits Commission.
- Deductible Gift Recipient: endorsed by or named through the Australian Taxation Office (ATO).
- Income Tax-Exempt Not‐for‐Profit: recognised by the ATO as a tax-exempt not-for-profit organisation.
Eligible nonprofits must have a public benefit mission (such as poverty relief, education, social welfare, environmental or cultural preservation, or human rights) and adhere to non-discrimination policies. Since late 2022, eligibility has also expanded to include public libraries, museums offering free services, and certain healthcare organisations.
Microsoft’s program excludes government agencies, schools and universities, political or labour organisations, some industry groups, and sports or fraternal clubs. Only staff and key stakeholders can use nonprofit-licensed products; beneficiaries and the general public cannot access them.
Microsoft further differentiates between the two licensing types:
- ‘Grant’ licenses (free): Assigned only to paid staff or unpaid executive leaders. These seats have caps and must be actively used.
- Discounted licenses: Available for all active staff, volunteers, and contractors. These have no strict user count limits besides product-specific caps (like 300 users for Business plans).
What Microsoft 365 Plans Are Available to Australian Nonprofits?
Microsoft 365 offers a range of plans tailored for Australian nonprofits, including free (donated) licenses and discounted subscription plans.
Donated (Free) Microsoft 365 Licenses
- Microsoft 365 Business Basic: Free for up to 300 users. It includes web and mobile Office apps, email hosting, Microsoft Teams, and 1 TB of OneDrive storage. It is best for organisations that do not need desktop apps.
- Microsoft 365 Business Premium: Free for up to 10 users until 1 July 2025. Includes desktop Office apps, Windows 11 upgrade, Teams, email, and advanced security.
- Office 365 E1: Free under an Enterprise Agreement for larger nonprofits (up to 2,000 users), offering web-based Office apps, email, Teams, and SharePoint. Ends in July 2025.
- Other Grants: Up to 50 free Windows 11 Pro licenses via TechSoup/Connecting Up and $3,000 USD (~$4,500 AUD) in Azure credits annually.
Discounted Microsoft 365 Nonprofit Subscription Plans
| Plan | Cost (AUD) | Key Features | User Limit |
| Business Basic | Free (up to 300 users) | Web/mobile Office apps, email, Teams | 300 users |
| Business Standard | A$4.50/user/month | Desktop Office apps, email, Teams, 1 TB cloud storage | 300 users |
| Business Premium | A$8.20/user/month | Desktop apps, advanced security, Windows 11 upgrade | 300 users |
| Office 365 E3 | ~A$9.10/user/month | Enterprise services, Office apps | Unlimited |
| Office 365 E5 | ~A$24.00/user/month | Adds advanced security, analytics, and voice capabilities | Unlimited |
Note: Prices exclude GST and may change.
Additional Offers
- Copilot AI Add-ons: The commercial price of A$38.25* per user per month for nonprofits.
- Volunteer Benefits and E3/E5 licensing – E3 at ~$14.20 AUD and E5 at ~$34.10 AUD*.
* based on an approximate exchange rate of 1 USD = 1.5 AUD
Tips for Choosing the Right Microsoft 365 Plan for Your Organisation
- Assess Your Needs: Identify how many staff and volunteers need email, collaboration tools, and desktop apps.
- Weigh Security Requirements: Plans like Business Premium or E3/E5 include advanced security features essential for handling sensitive data.
- Consider Your Size: Business plans cover up to 300 users. Larger organisations should look at E3/E5 options.
- Balance Cost and Functionality: Use free Business Basic seats for staff who need email and Teams only. Pay for more advanced plans for those needing desktop apps or higher security.
The flexibility to ‘mix and match’ plans within your nonprofit tenant lets you tailor your Microsoft 365 environment to fit budget and security needs.
Understanding the Business Premium License Changes in 2025
Starting 1 July 2025, Microsoft will discontinue the free 10-user grant for Business Premium licenses and the free Office 365 E1 plan. Nonprofits using these free plans will need to budget for discounted subscriptions or adjust to alternative plans to avoid service disruptions. To help with transitions, Microsoft provides a 30-day active period plus a 60-day data retention window after expiration.
How to Apply for Microsoft 365 Nonprofit Licensing
- Register: Visit the Microsoft Nonprofits portal and sign in with your Microsoft account.
- Validate Eligibility: Provide details about your organisation’s status and mission. In Australia, this is done via TechSoup/Connecting Up.
- Receive Approval: Once verified, you’ll get access to nonprofit pricing in the Microsoft 365 Admin Center.
- Assign Licenses: Allocate free or discounted licenses to eligible staff and volunteers.
- Maintain Compliance: Stay up-to-date with Microsoft’s eligibility checks and remove unused donated seats to avoid misuse.
Conclusion
Microsoft 365 licensing for Australian nonprofits provides a valuable opportunity to access world-class digital tools without breaking the budget. By taking advantage of free and discounted plans, your organisation can improve productivity, security, and data protection, helping you better serve the community while maintaining compliance and control over your data environment.
Review your current technology environment to get started and consider what services and security your team needs. Then, work with a trusted IT partner or register directly through the Microsoft Nonprofits portal to validate your eligibility and secure your licences.
BITS Can Assist with Microsoft 365 licensing and Optimising for your Business
For further guidance or if you’re unsure about which plan fits your goals, our team at BITS can assist you with navigating Microsoft 365 licensing and optimising your IT infrastructure.
Take our Microsoft 365 Assessment and find ways to further strengthen your security.