Microsoft Pulls Free, Donated Software Licenses To Nonprofits 📊💰 (news)

In this week's episode of the Nonprofit Newsfeed from Whole Whale, hosts Nick and George focus on significant shifts in nonprofit tech strategy and community recognition initiatives.

Main Topics:

1. Microsoft's Software Grant Changes:

   • Microsoft announced the end of its decade-long grant program providing free Microsoft 365 business premium accounts and Office 365 E1 licenses to around 400,000 nonprofits. This change, effective for renewals on or after July 1, 2025, will require nonprofits to transition to paid licenses with only two months' notice.
   • The financial impact is notable, especially for smaller organizations with minimal revenue, where the cost could represent 1-2% of their operating expenses.
   • George and Nick discuss the broader implications, including the risks of dependency on single tech solutions and the potential stifling of open-source development.

2. Whole Whale's Foundation Study:

   • Whole Whale released its 2020-2024 foundation study, analyzing 1,600 US foundations with over $25 million in revenue. The study offers insights into grant distribution, advertising, and promotion expenses, highlighting sectors like arts, education, and legal aid as lower recipients of funding.
   • The study is a valuable resource for nonprofits to understand funding landscapes and strategize accordingly.

3. Legislative Updates:

   • Recent developments in the GOP's "one big beautiful bill" indicate the removal of a controversial provision that threatened nonprofit tax-exempt statuses. This provision allowed for revocation without due process and had raised significant concerns within the nonprofit sector.
   • Advocacy efforts from organizations like the ACLU and the Council for Nonprofits were instrumental in this outcome, though vigilance remains necessary as the bill progresses.

4. United Way's Courage Project:

   • The United Way launched a $5 million initiative to honor community heroes through grants of up to $50,000. Initial recipients include teachers who defended students against ICE agents and organizations supporting immigrants.
   • This project underscores the importance of recognizing and supporting grassroots efforts that uphold community values and justice.