For many years, non-profit organisations in South Africa have benefited from Microsoft’s donated licences, gaining access to productivity and collaboration tools at little or no cost. That model has now changed, and NPOs need to review their current licensing, assess their real needs, and plan how best to take advantage of the new discounted offerings to maintain continuity and cost efficiency.
In May 2025 Microsoft announced adjustments to its non-profit licensing programme. The donated licences for Microsoft 365 Business Premium and Office 365 E1 will be discontinued for renewal dates on or after 1 July 2025. However, the Microsoft 365 Basic grant remains available, and most other packages will continue to be offered at significantly discounted rates.
According to Argantic CEO Garry Ackerman, this update presents an opportunity for non-profits to review and optimise their IT environments. “Rather than viewing the change as a setback, it’s a good moment for organisations to take stock of what they use, what they need, and how technology can best support their mission.”
Many NPOs operate with limited budgets and stretched resources, often prioritising their core mission over IT management. “Over time, this can lead to inefficiencies – unused licences, outdated systems, or gaps in governance,” Ackerman notes. “A structured review now can help organisations make better use of the discounts and grants that remain available.”
While the transition may introduce some new costs, it also encourages a more strategic approach to licensing. Organisations can determine whether the free Microsoft 365 Business Basic plan – supporting up to 300 users with web-based applications – is sufficient, or whether discounted full-feature plans like Business Premium or Office 365 E1 are necessary for their operations.
“We’ve worked with non-profits such as Peace Parks Foundation and others, helping them modernise their IT systems, optimise costs, and align technology decisions with their goals,” he explains.
Argantic’s focus is on long-term value rather than traditional billable consulting. The company aims to ensure that technology investments directly support each organisation’s mission, governance, and sustainability.
The key for NPOs is to start early. By auditing current licence usage and renewal dates, organisations can understand where they stand and plan accordingly. Segmenting users, distinguishing between those who need full desktop applications and those who can operate on web-based versions, can further reduce costs and improve efficiency.
Ackerman advises that timely planning will help avoid disruptions. “Because the changes apply from your next renewal after 1 July 2025, reviewing your licences now ensures a smooth transition and continued access to the tools your teams rely on.”
