Microsoft is putting up the price of its Microsoft 365 business subscriptions from 1 July 2026, and not-for-profits aren’t exempt. In its official announcement, Microsoft confirmed list-price rises across its commercial suites and stated plainly that “nonprofit pricing will be adjusted in line with commercial pricing.” The headline moves are Business Basic going from US$6 to US$7 per user each month (up 17%) and Business Standard from US$12.50 to US$14 (up 12%). Business Premium stays at US$22. Existing customers see the new rate at their first renewal after 1 July.

For a not-for-profit running on tight, grant-funded budgets, a per-seat increase across dozens or hundreds of staff and volunteers adds up fast — and it lands on top of the wind-back of some of Microsoft’s free nonprofit offers over the past year, which already pushed many organisations onto paid (if discounted) licences. The flip side is that Microsoft is adding real value to the cheaper tiers, including time-of-click link protection that checks dodgy URLs in email and Office apps. For an organisation that can’t justify a separate email security product, that’s a genuine win.

What to do before July. Pull an accurate count of your licences and strip out seats for people who’ve moved on — licence sprawl is the most common source of wasted spend we see in the sector. Check you’re on the right tier for what you actually use, not a more expensive one out of habit, and confirm you’re getting the nonprofit discount you’re entitled to. If your renewal falls just after 1 July, ask your provider whether you can renew earlier to hold the current rate for your term.

Want a hand reviewing your licensing before the increase hits? We help not-for-profits get the most from their Microsoft 365 setup — see our not-for-profit IT services.