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Office 365 E1 Licensing Update

There's an update to Office 365 E1 licensing caps and eligibility rules for user licensing.

The global nonprofit eligibility guidelines (https://www.microsoft.com/en-us/nonprofits/eligibility) have been updated to help reduce ambiguity and consistency in application of User Licensing guidance. The updated User Licensing rules are as follows:


User licensing

Donated nonprofit offers are permitted for:

  1. Paid nonprofit employees;
  2. Unpaid staff who perform material day-to-day managerial and/or fiduciary responsibilities, such as the board of directors, program directors, and senior leadership of the organization (including executive director, president, and officers).

Discounted nonprofit offers are permitted for all nonprofit staff and volunteers.

Nonprofit beneficiaries, donors, and members (such as members of a church, club, or sports team) are NOT eligible for nonprofit offers.


Microsoft maintains a license cap on Office 365 E1 licenses on new tenants. Please contact your Microsoft licensing executive for further questions on this.