Concerns have been expressed for the impact on UK charities of Microsoft’s recent decision to end its free software service offers for voluntary organisations.
Last week, the US technology giant announced it would end its free offers of Microsoft 365 Business Premium and Office 365 E1 to charities in July.
From July, the firm will instead offer discounts of up to 75% on the software services to charities as well as up to 300 licenses of the more rudimentary Microsoft 365 Business Basic.
Microsoft said in its announcement, which came a week after founder Bill Gates’ pledge to give $200bn (around £150bn) to charitable causes through his foundation over the next 20 years, that it was making the changes “to streamline our grant offerings and simplify our grant portfolio”.
However, some have expressed concerns that the software offer changes could negatively impact smaller charities.
‘Big impact’ on small charities
Olivia Barker White, chief executive of small international development charity Kids Club Kampala, said her charity has used Microsoft 365 Business Premium for several years but will now consider switching to different software.
However, she said changing to another provider would be difficult as Microsoft Office is most commonly used so her charity might have to start paying, even for a less advanced version of the US firm’s services such as Microsoft 365 Business Standard.
“It is an additional cost, and it is going to have a big impact, and it’s going to disproportionately affect the smallest charities,” she told Civil Society.
In a social media post, Qlic IT managing director Adam Graham said he was “shocked and disappointed” that Microsoft was making the changes with only a few weeks’ notice.
“It’s a real blow to smaller non-profits, especially those already stretched to the limit with resources and funding,” he said.
“We support hundreds of these organisations, and the sense of frustration is real. There’s little time to budget or plan.”
Petition launched
The US-based International Misophonia Foundation has opened a petition urging Microsoft to reconsider the pricing changes, which has gained over 900 signatures.
Its petition reads: “Without the financial backing from Microsoft's grant program, countless non-profits may face operational challenges that could cripple their efforts.
“This could lead to reduced services, slowed growth, and in some cases, the unfortunate closure of organisations vital to the welfare of the communities they serve.
“Considering the critical importance of non-profit work and the growing difficulty in obtaining funding, we urge Microsoft to reconsider their decision.
“Continuing the grant program would not only demonstrate Microsoft's commitment to social responsibility but also bolster the impact these non-profits have.”
A Microsoft spokesperson said: “As part of a recent update to our nonprofit offers, we are retiring the Microsoft 365 Business Premium and Office 365 E1 grant offers.
“Existing grant recipients can continue service through their next renewal on or after July 1, 2025.
“When they renew, eligible nonprofits will have several options to maintain access to secure, modern collaboration tools—including up to 300 free Microsoft 365 Business Basic licenses and up to a 75% discount on Microsoft 365 Business Premium and Office 365 E1.
“We’re committed to making this transition smooth and are working closely with partners to provide clear guidance and hands-on support.”
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