The Clippy Tax Is Now Fully in Effect
It's official — as of July 2026, the last free licenses have expired.
"It looks like you're trying to help your community. That'll be $60 per employee per year, please."
Or just leave: How long does it take to migrate from Microsoft Office to LibreOffice? →
One year later: every grandfathered renewal has lapsed. All 400,000 nonprofits have officially lost their free Microsoft 365 licenses.
The Numbers That Matter
Microsoft's decision to end free grants hit small nonprofits the hardest.
Nonprofits affected worldwide
New cost per employee / year
Max revenue for Microsoft
Of median nonprofit IT budget
What Happened?
Microsoft ended the free Microsoft 365 Business Premium and Office 365 E1 grants that 400k nonprofits relied on since 2013. Licenses expired at each organization's first renewal after July 1, 2025 — so as of July 2026, the phase-out is complete and the last free licenses are gone. Organizations now pay $60 per employee annually or downgrade to web-only apps — money that could feed families, house the homeless, or fund critical programs.
- ✕Small nonprofits operate on razor-thin budgets
- ✕Many serve rural areas needing offline desktop apps
- ✕$1,320 for a 20-person nonprofit = 1-2% of entire operating budget
Run, Clippy, Run!
The grants ended, but the quota didn't. Help Clippy repossess the CDs while leaping over the inconvenient humans his software used to help.
Clippy's CD Heist
The grants are gone — now Clippy wants the CDs back. Repossess the software, leap over the do-gooders, and whatever you do, don't jump into the 📨 renewal invoices. Golden CDs pay double. That $264M won't collect itself.
Undo the Clippy Tax
The grants are gone — but they don't have to stay gone. Join thousands demanding Microsoft restore its commitment to nonprofits.
Watch: The Clippy Tax, Explained
Two minutes on what Microsoft cancelled and what it costs the sector.