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Grant usage and recurring notifications

Microsoft sends recurring automated notifications to nonprofit customers to help them maintain eligibility and compliance for active product grants. These notifications serve as reminders, proactive guidance, or warnings based on the organization's actual usage or administrative status.

Notifications include M365 Nonprofit Subscription Expiring, M365 Utilization Grant Requirements, and M365 Nonprofit Licenses Will Be Disabled alerts. They're tied to grant program requirements like the 85% threshold for license usage and general eligibility status.

These messages are not exclusive to Azure or consumption-based products. They also apply to cloud services like Microsoft 365, where nonprofit license grants are subject to specific usage requirements.

Why these notifications matter

Microsoft for Nonprofit grants licenses and resources to eligible nonprofits with the expectation that these benefits are actively used to support community missions. Regular use ensures:

  • Long-term eligibility
  • Accurate licensing allocation

If usage is too low or absent, organizations might lose access to these grants or be required to reapply. Automated notifications help prevent this loss of access by giving organizations time to take action before grants are removed or converted to commercial pricing.

Notification types and what to do

M365 Nonprofit Subscription Expiring

Microsoft sends a notification when it detects no usage activity across assigned Microsoft 365 licenses in the past 90 days. This notification could also apply to Azure Sponsorships with zero billing activity.

Why you're receiving it

Reasons include:

  • No users are actively using assigned licenses.
  • Licenses were assigned, but staff didn't adopt them.
  • Services were misconfigured or never activated.

What to do

  1. Sign in to the Microsoft 365 Admin Center or the Azure portal.

  2. Identify and unassign licenses from inactive users. Use this guided demo to unassign users or reallocate licenses.

  3. When you're ready to begin using the grant again, activate new services or contact a Microsoft partner for assistance.

For more information, review Microsoft's nonprofit eligibility guidelines.

M365 Utilization Grant Requirements

Microsoft issues a notification when fewer than 85% of assigned Microsoft 365 licenses are in active use. Active use means a user has accessed at least one cloud workload (for example, in Teams, Outlook, or SharePoint) in the past 90 days.

Why you're receiving it

Reasons include:

  • You have too many inactive or unnecessary license assignments.
  • Staff or volunteers didn't broadly adopt Microsoft 365 apps.

What to do

  1. Review usage reports in the Microsoft 365 admin center.

  2. Unassign licenses that aren't in use. (They remain available for reassignment.) Review this step-by-step guide to identify inactive users.

  3. Encourage adoption by using Microsoft 365 Adoption resources. Partner support is available if you need help implementing adoption.

M365 Nonprofit Licenses will be Disabled

A notification about the disablement of M365 Nonprofit licenses means you're at risk of losing eligibility for Microsoft nonprofit offers due to prolonged inactivity or underutilization. Or, a recent eligibility review that found your organization no longer meets the criteria.

Why you're receiving it

Reasons include:

  • Your organization has consistently low or zero license usage.
  • Your organization no longer meets nonprofit requirements.

What to do

  1. Take immediate action by reviewing your eligibility and usage.

  2. If you're still eligible, unassign unused licenses or increase active use to retain benefits.

Best practices to stay compliant

  • Review usage monthly in your Microsoft 365 admin portal.
  • Unassign unused licenses if users no longer need access.
  • Encourage adoption by training users and sharing tips.
  • Use Microsoft Cost Management tools to monitor cloud credit consumption.
  • Create Azure Service Health alerts for your admin to detect problems early.
  • Pair with a Microsoft partner if your organization lacks in-house IT support.

Additional support and resources

Still need help? Submit a support request through our Contact Us form.