For UK nonprofits—including charities, housing associations, community organisations and social enterprises—the right technology can dramatically increase impact. Microsoft’s nonprofit licensing programme offers discounted access to the same enterprise‑grade tools used by the world’s leading organisations, helping charities modernise operations, strengthen security and empower staff.
And with recent updates to UK pricing and upcoming changes to Microsoft’s licensing grants, now is the perfect time for non-profits to review their current setup and secure the best value.
Why Microsoft Licensing matters for Nonprofits:
Microsoft provides heavily discounted licensing for eligible nonprofits, enabling them to access productivity tools, AI capabilities, enterprise security features and cloud collaboration—without the enterprise‑level cost.
Key benefits:
- Discounts across Microsoft 365 plans, including up to 75% off Microsoft 365 Business Premium for eligible nonprofits. [microsoft.com]
- Free licensing options, including up to 300 free Business Basic licences covering email, Teams, SharePoint and web/mobile Office apps. [texaport.co.uk]
- Powerful productivity suite across Word, Excel, PowerPoint, Outlook, Teams, SharePoint, OneDrive and more—available across desktop, web and mobile depending on the licence. [microsoft.com]
- Built‑in security, including Microsoft Defender, Intune device management, and Microsoft Entra ID identity protection. [microsoft.com]
- Access to Microsoft 365 Copilot at discounted non-profit rates, unlocking AI‑powered workflows and data insights. [microsoft.com]
These tools help non-profits reduce operational overhead, improve data governance and streamline service delivery—critical outcomes for organisations operating under tight budgets.
Important licensing changes UK Nonprofits should be aware of (2026)
From 1 July 2026, Microsoft is introducing global pricing changes across Microsoft 365, and UK nonprofit organisations are directly affected.
Nonprofit Microsoft 365 pricing is calculated as a fixed percentage discount off commercial pricing. As a result, when commercial prices increase, nonprofit prices increase proportionally at the next renewal.
What’s changing in 2026
- Microsoft 365 Business, Enterprise, Frontline and Office 365 plans will increase in price
- Standalone services such as EMS, Defender, Purview, Windows and Entra ID are also impacted
- Nonprofit pricing adjusts automatically in line with these changes
- New pricing applies at the first renewal on or after 1 July 2026
What remains unchanged
- Microsoft 365 Business Basic remains free for eligible nonprofits
- Nonprofits continue to receive significant discounts on paid Microsoft 365 plans
- Feature parity is maintained — nonprofits receive the same security, productivity and AI enhancements as commercial customers
Why this matters
Under CSP, pricing is applied at renewal. This means organisations that renew before July 2026 can lock in current pricing for the duration of their term, while those renewing after will move immediately to the higher rates.
With pricing, renewals and licensing now tightly linked, many UK nonprofits are uncertain whether their licences are:
- Cost‑effective
- Correctly aligned to current Microsoft policy
- Exposed to avoidable price increases
A structured Microsoft licence review is therefore essential in 2026 to ensure nonprofits remain compliant, optimised and confident in their licensing strategy.
Which Microsoft 365 plans are available for UK Nonprofits?
Microsoft offers a wide range of discounted and grant‑funded Microsoft 365 licences tailored to nonprofit organisations of all sizes. These include options for productivity, security, collaboration, device management and AI‑powered tools.
➡️Explore Microsoft 365 Nonprofit plans & pricing
Why act Now?
Many UK nonprofits—particularly housing associations—face tightening budgets.
Based on recent UK renewal analysis:
- A 7% price reduction for UK customers will come into effect on 1 February 2026 due to FX adjustments. For a non-profit with £100k annual spend, that’s an immediate £7,000 saving.
- Nonprofits renewing before July 2026 can avoid the upcoming 10–25% price increase, equating to £10k–£25k saved per £100k spend.
These savings make timely review essential.
How Codec Supports UK Nonprofits
As a long‑standing Microsoft Solutions Partner, Codec helps nonprofits navigate Microsoft licensing complexity, secure the best pricing and ensure compliance.
Here's what Codec can do for you:
- Confirm nonprofit eligibility and apply the correct sector‑specific price lists.
- Benchmark Enterprise Agreement vs CSP vs annual commitments to identify the most cost‑effective model.
- Optimise your licence mix (e.g., E3/E5, Business Premium, F‑series, Power Apps).
- Provide renewal and price‑protection strategies, helping nonprofits avoid future increases.
- Deliver a firm, transparent quotation based on up‑to‑date nonprofit pricing.
This hands‑on support ensures organisations don’t overpay, don’t miss grant opportunities and can plan budgets confidently.
Next Steps for Your Organisation
If you're a UK nonprofit or housing association considering a licence review:
- Gather your current licence counts and renewal dates.
- Share your latest invoice or agreement details.
- Codec will prepare a free, no‑obligation quotation using the most advantageous non-profit offers available.
Final Thoughts
With Microsoft 365 pricing now aligned globally from 1 July 2026 and nonprofit rates tied directly to commercial pricing, this is a pivotal moment for UK non‑profits to reassess their Microsoft environment. Licensing decisions are no longer just administrative — they have a direct impact on budget planning, security posture and long‑term sustainability.
Whether your organisation is aiming to control costs, improve operational efficiency or strengthen cybersecurity, the right CSP‑based licensing model can unlock significant value when aligned correctly with renewal timelines and organisational needs.
Codec supports UK nonprofits at every stage of this process — helping you navigate licensing complexity, apply the correct nonprofit pricing, and plan renewals strategically. Our goal is simple: to ensure you achieve the best value licensing while equipping your organisation with secure, modern Microsoft tools that empower your mission well into the future.
To discuss how CSP can support your organisation, please contact Richard Nolan, Head of Digital Licensing today: rnolan@codec.ie