Microsoft has announced (opens in a new tab) that it will soon increase the price of its desktop software subscriptions for nonprofit organizations.
The price increase will take effect on September 1, 2022 and will vary depending on the specific subscription plan. The biggest change will be in the Office 365 E3 suite, the price of which will increase by almost 30% to €5.75/user/month.
Although Microsoft only provided specific numbers for US-based customers, the company confirmed that the increase will apply worldwide, with "local market adjustments" in some regions.
Microsoft 365 Pricing
The decision to increase prices for non-profit customers follows a broader price increase announced last month. Microsoft described the change as the first "substantial price upgrade to Office 365" since the productivity suite launched just over a decade ago.
In an FAQ article about the latest surge, Microsoft made a move toward introducing new Office 365 apps and services as justification for the change.
The company also said it believes business and nonprofit customers have recovered enough from the pandemic-related turmoil to weather the surge, though conditions remain somewhat unpredictable.
"Now is a good time to update our pricing. While there are still questions and uncertainties, we are seeing clear signs of economic recovery around the world," Microsoft wrote.
“Also, in recent years, our competitors have increased their prices, sometimes aggressively. We simply have a better track record and a proven track record of reinvesting in products and consistently delivering new value to our customers.
Despite the price increase, rates for charities and other nonprofits remain significantly lower than typical business customers, with discounts of up to 75% on some plans.