Microsoft raises 365 prices for nonprofits

The company first announced the price change last month in an update to a Partner Center website, where it regularly posts deal announcements and price adjustments.

The price increases are as follows:

  • Microsoft Office 365 E1: from $2.00 to $2.50
  • Microsoft Office 365 E3: from $4.50 to $5.75
  • Microsoft Office 365 E5: from $14.00 to $15.20
  • Microsoft 365 E3: from $8.00 to $9.00
  • Microsoft 365 Business Premium: from $5.00 to $5.50

The change affects non-profit customers across all licensing channels. However, offers available as a grant, such as 10 licenses of Microsoft 365 Business Premium, 300 licenses of Microsoft 365 Business Basic, and 2,000 licenses of Microsoft Office 365 E1 through Enterprise Agreement, will not be affected by the change.

Prices are still low compared to commercial products, with nonprofits paying 60 to 75 percent less than corporate customers.

When we compare the percentage increase in price increases for nonprofit customers with those imposed on commercial customers last month, one stands out: the price of Office 365 E3 is up 27.78 percent for nonprofit customers, compared to a price increase of 15 percent for business customers.

Prices for the other four products rose at the same rate for both non-profit and commercial customers.

The company increased the price of its basic business plan for commercial customers last year by 20 percent, from $5 to $6 per user per year, while the high-end Microsoft 365 E3 rose 12.5 percent, from $32 to $36 per year. user.

Microsoft justified its decision to raise prices for nonprofit customers on an FAQ page, noting that it has introduced 24 new apps ā€” including Teams ā€” and more than 1,400 features for Microsoft 365 in the past decade.

Microsoft also says in the FAQ that it will no longer offer on-premises software grants as part of a new cloud-first grant program.

ā€œIn anticipation of updates to our on-prem grant program on April 4, we wanted to give nonprofit customers enough time to move to the cloud and lock in existing Microsoft 365 nonprofit pricing,ā€ the company said.

“With this in mind, we have postponed this price increase by six months due to the commercial price changes to give nonprofits enough time to make the switch.”


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