Role guide · Nonprofits · Microsoft 365 · Oct 2026

Microsoft 365 Copilot for nonprofits (Oct 2026): nonprofit Copilot pricing, the free Copilot Chat in the Business Basic grant, and board-report drafts your development team checks

Nonprofit role guide — Microsoft gives eligible nonprofits up to 300 free Microsoft 365 Business Basic licenses, and those include Copilot Chat, Microsoft's secure AI chat, at no extra charge. The paid add-on that puts Copilot inside Word, Excel, Outlook, and Teams is Microsoft 365 Copilot at $25.50 per user per month, paid yearly, and it needs a qualifying Microsoft 365 plan underneath. Microsoft Learn says the old Business Premium grant has been discontinued, so check what your licenses renew into. This page covers prices, who qualifies, and six jobs where Copilot drafts and your development team checks every total and claim before anything reaches the board, a donor, or a funder. Donor names, gift amounts, and anything confidential stay out of prompts unless your data policy allows it. Product deep-dive: Microsoft 365 Copilot.

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Who this guide is for

Development directors, grants managers, finance leads, and executive directors at a nonprofit that already runs on Outlook, Teams, Word, and Excel, or is deciding whether to, and wants AI help with board reports, appeals, meeting notes, and grant drafts. Microsoft's eligibility page (read 24 October 2026) says the person registering must be an employee or strategic volunteer of the nonprofit, not a third-party IT provider, and that beneficiaries, donors, and members are not eligible for nonprofit offers.

Donor data stays out by default. Microsoft describes Copilot Chat as secure AI chat, and the paid Copilot works with the files and email your account can already reach. Those are vendor descriptions, not a decision about your donors. Your data policy, donor privacy promises, and contracts decide what may go in; this guide keeps donor names, addresses, and confidential notes out of prompts and files, and it is not legal, tax, or gift-acceptance advice.

Ground rules for every section below: Copilot drafts and summarizes; it does not decide who to ask, how much to ask for, or what to promise a funder, and a named person owns every donor-facing message, gift record, ask amount, and funder submission: the development director owns every board report, appeal, and ask amount, the database manager every gift record, the grants manager every proposal, and the executive director every license purchase and funder submission.

A simple mark we drew for this role guide. The diagrams show workflows, not product screenshots.

Major features (with how someone uses them)

Examples at a glance: each feature has a concrete example from a real job plus a short Try this you can run this week.

1. A board development report drafted in Word (primary)

What it is: Export this quarter's gift summary from your donor database as totals by fund, appeal, and month, with donor names removed. In Word, open Copilot and ask for a two-page board development report that uses that spreadsheet and last quarter's report as sources, with a short table of totals and a list of anything the data does not explain. Microsoft's AI for nonprofits page says the paid Copilot helps with “drafting documents and messages, generating insights from data, and summarizing meetings and emails” across Word, Excel, PowerPoint, Outlook, and Teams.

A clean draft is not a checked report. Copilot can carry an old number forward from last quarter's file, round a total the wrong way, or describe a program result the spreadsheet never mentions. The development director checks every figure against the gift records, not against the draft.

Concrete example (development director at a 14-person community health nonprofit) She asks for the Q3 board report from a gift summary with no donor names. The draft reads well, but it says the spring appeal raised $48,200; the spreadsheet says $42,800, and the larger figure came from last quarter's report, which counted a matching gift twice. It also claims the clinic “served more patients than ever,” which nothing in the files supports. She fixes the total, cuts the claim, and the executive director reads the final version before it goes in the board packet.

Diagram of a board report draft in Word built from a gift summary with no donor names, beside a panel showing the development director check before the board sees it — Simple diagram of a Copilot board-report draft. Not a Microsoft screenshot — the layout is ours. Simple diagram — not an official product screenshot.

Try this

Primary workflow:

Ask Copilot in Word to draft this quarter's board development report from your gift summary spreadsheet with donor names removed. Have the development director check every total and every program claim against the gift records before the report goes to the board.

2. The free grant, the discounted plans, and the Copilot add-on

What it is: Microsoft's offers page lists Business Basic as free for up to 300 users, with web and mobile versions of Outlook, Teams, Word, Excel, and PowerPoint, Copilot Chat, and 1 TB of storage per user. Business Premium is $5.50 per user per month, paid yearly, with desktop apps and stronger security. Microsoft's nonprofit plans page lists Business Standard at $3.50 per user per month, paid yearly. The Microsoft 365 Copilot add-on is $25.50 per user per month, paid yearly, and Microsoft says a qualifying Microsoft 365 plan is required to buy it.

Most small teams only need the paid Copilot for the few people who write reports and appeals every week. Price it per person who needs it, not for the whole staff, and add the plan underneath it.

Concrete example (executive director at a 30-person youth services nonprofit) Her staff are on the free Business Basic grant. The development director and grants manager want Copilot inside Word and Outlook. She prices two Copilot add-ons at $25.50 a month, paid yearly: $612 a year, and confirms with Microsoft or her partner that Business Basic counts as a qualifying plan for her account before she buys anything.

Split diagram: free Business Basic grant with Copilot Chat, discounted plans, Copilot add-on for the people who need it, executive director decides — Simple split by job: split diagram: free business basic grant with copilot chat, discounted plans, copilot add-on for the people who need it, executive director decides. Simple diagram — not an official product screenshot.

Try this

Price per person:

List the people who would use Copilot inside Word or Outlook every week. Have the executive director price the $25.50 add-on for only those people and confirm the plan underneath qualifies before buying.

3. Check what your grant renews into

What it is: Microsoft Learn's nonprofit updates page says “The Microsoft 365 Business Premium grant has been discontinued. Your licenses will expire on your next renewal date and will not renew.” It says the Office 365 E1 grant was also discontinued, and that Microsoft continues to provide up to 300 granted licenses of Business Basic, with discounts of up to 75 percent on many nonprofit offers. License moves have to be made by hand in the Microsoft 365 admin center.

If your team still uses desktop Word and Excel on an old Premium grant, those licenses will not renew on their own. Moving users to Business Basic means web and mobile apps only, unless you buy a paid plan.

Concrete example (operations manager at a 12-person land trust) She opens the admin center and finds 12 staff on the discontinued Business Premium grant, renewing in February. She lists who needs desktop apps (the finance lead and the GIS specialist), moves the rest to Business Basic before renewal, and the executive director approves two Business Premium licenses at $5.50 a month for the other two.

Workflow from admin center check to list who needs desktop apps to move licenses to executive director approval — Simple workflow diagram: workflow from admin center check to list who needs desktop apps to move licenses to executive director approval. Simple diagram — not an official product screenshot.

Try this

Check your renewal date:

Have the operations manager check which grant every user is on and the renewal date in the Microsoft 365 admin center, and list who needs desktop apps, before the executive director approves any paid plan.

4. Copilot Chat on the free grant, and what it does not do

What it is: Microsoft's AI for nonprofits page says Copilot Chat “provides secure AI chat and is included in your Microsoft 365 subscription at no extra charge,” with file upload, image generation, and Copilot Pages for saving and sharing content. The paid Copilot is the version built into the Microsoft 365 apps themselves. Microsoft's plans page adds that “an Azure subscription is required to use agents and is priced on a metered basis.”

Copilot Chat is a good place to start: draft a thank-you template, rewrite a program description in plain language, or brainstorm event names, all with no donor data. Agents are a separate cost you meter and watch.

Concrete example (communications lead at a 6-person animal shelter) She uses Copilot Chat to turn a two-page adoption program summary into a 150-word newsletter piece, with no adopter names. Copilot adds “over 1,000 animals placed this year”; the real count is 640. She fixes it, and the development director approves the piece before it goes in the newsletter.

Split diagram: Copilot Chat on the free grant, paid Copilot inside the apps, agents metered on Azure, development director approves — Simple split by job: split diagram: copilot chat on the free grant, paid copilot inside the apps, agents metered on azure, development director approves. Simple diagram — not an official product screenshot.

Try this

Start with Copilot Chat:

Have the communications lead draft one newsletter piece in Copilot Chat with no donor or client names, and the development director check every number against your records before it goes out.

5. Teams meeting recaps for development meetings

What it is: Microsoft's AI for nonprofits page lists summarizing meetings and emails among what the paid Copilot does in Teams and Outlook. For a weekly development meeting, ask Copilot in Teams for a recap with decisions, owners, and due dates, then turn that into the follow-up email.

A recap reflects what was said, including things said in confidence about a donor. Decide which meetings Copilot recaps, and keep major-donor strategy meetings out unless your policy allows it.

Concrete example (grants manager at a 9-person literacy nonprofit) After the weekly development meeting, Copilot's recap lists her as owner of the foundation report due Friday. The team actually agreed on next Friday, and the recap left out that the executive director would call the program officer first. She corrects both, and the development director sends the follow-up.

Workflow from meeting to Copilot recap to grants manager corrects to development director sends — Simple workflow diagram: workflow from meeting to copilot recap to grants manager corrects to development director sends. Simple diagram — not an official product screenshot.

Try this

Check the recap:

After one development meeting, ask Copilot in Teams for decisions, owners, and due dates. Have the person who ran the meeting correct the recap before anyone sends it.

6. Copilot Studio and agents: ask before you build

What it is: Microsoft's AI for nonprofits page names Copilot Studio for custom agents, with examples such as helping volunteers find the resources they need. The nonprofit pages we read on 24 October 2026 print no nonprofit price for Copilot Studio, and agent use needs a metered Azure subscription. Ask Microsoft or your partner for a written quote. Microsoft also offers free Copilot QuickStart Training and a Prompt Gallery for staff.

An agent that answers volunteers answers them all, every time, from whatever files it was given. If a file is out of date, every volunteer gets the old answer.

Concrete example (volunteer coordinator at a 40-person food bank) She wants an agent that answers shift questions from the volunteer handbook. Before anyone builds it, the operations manager asks a Microsoft partner in writing what the agent will cost per month on metered Azure, and the coordinator checks the handbook for outdated shift times. The executive director approves a three-month test with a monthly cost limit.

Workflow from agent idea to written quote to handbook check to executive director approval — Simple workflow diagram: workflow from agent idea to written quote to handbook check to executive director approval. Simple diagram — not an official product screenshot.

Try this

Get a written quote:

Before building any Copilot Studio agent, have the operations manager get a written monthly cost estimate from Microsoft or a partner, and the executive director approve a test with a cost limit.

Pricing context (October 2026)

As listed on Microsoft's offers for nonprofits page and nonprofit plans page (checked 24 October 2026): Microsoft 365 Business Basic free for up to 300 users (web and mobile apps, Copilot Chat, 1 TB per user); Business Standard $3.50 per user per month, paid yearly; Business Premium $5.50 per user per month, paid yearly; Microsoft 365 Copilot add-on $25.50 per user per month, paid yearly, which needs a qualifying Microsoft 365 plan. Microsoft says Copilot may not be available in all markets and languages.

Copilot Chat is included in Microsoft 365 subscriptions at no extra charge. Agents need an Azure subscription priced on a metered basis, and no nonprofit Copilot Studio price is printed on the pages we read; ask Microsoft or a partner for a quote. Microsoft Learn's updates page says the Business Premium and Office 365 E1 grants have been discontinued. Granted licenses carry a rule to keep at least 85% of them in active use (eligibility page).

Uncertainty: Microsoft's nonprofit offers, prices, and grant terms change; use the live offers page and your admin center. Prices are in USD as read on 24 Oct 2026, and two Microsoft pages blocked automated reading, so we read them through a fetch tool. We did not test Copilot on a live nonprofit account. Whether Business Basic counts as a qualifying plan for the add-on on your account is a question for Microsoft or your partner. Whether donor data may go into any tool is a decision for your organization, its counsel, and the contract, not this page.

When it’s useful (honest take)

Useful when your nonprofit already works in Outlook, Teams, Word, and Excel, a few people write board reports, appeals, and grant drafts every week, and a named person checks every draft — the development director for board reports and appeals, the grants manager for proposals, the executive director for license purchases.

Less useful when your team runs on Gmail and Google Drive (Gemini for nonprofits), your donor CRM already drafts appeals with data inside it (Bloomerang AI, Blackbaud AI), or one or two people want a chat tool rather than Copilot inside Office (Claude for nonprofits, ChatGPT for nonprofits).

Paying for Microsoft 365 Copilot and a few other AI tools? The $9 AI toolkit spreadsheet lists every AI subscription you have, what each one costs, and how fast it pays for itself, so you can see which ones are worth the money.

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Related options (educational)

Where nonprofit drafting jobs can live (Oct 2026)
Need	Better home	Why
Copilot inside Word, Excel, Outlook, Teams	Microsoft 365 Copilot (this page)	$25.50/user/month paid yearly, plus a qualifying plan
Secure AI chat on the free grant	Copilot Chat	Included with Business Basic (free up to 300 users)
Gemini app and notebook on Google's $0 plan	Gemini for nonprofits	$0 plan; Business Standard $3.50
Long drafts and analysis in a chat tool	Claude for nonprofits	See guide
Chat seats for a small team	ChatGPT for nonprofits	See guide
Custom agents in Microsoft's stack	Copilot Studio	Quote; agents metered on Azure

FAQ

How much is Microsoft 365 Copilot for nonprofits?

Microsoft's nonprofit offers page, checked 24 October 2026, lists the Microsoft 365 Copilot add-on at $25.50 (USD) per user per month, paid yearly. A separate license for a qualifying Microsoft 365 plan is required, and Microsoft says Copilot may not be available in all markets and languages.

Is Copilot free for nonprofits?

Copilot Chat is included in Microsoft 365 subscriptions at no extra charge, including the Business Basic grant that is free for up to 300 users. The paid Microsoft 365 Copilot that works inside Word, Excel, Outlook, and Teams is the $25.50 add-on. Agents need a metered Azure subscription.

Is the Business Premium grant still available?

No. Microsoft Learn's nonprofit updates page says the Microsoft 365 Business Premium grant has been discontinued and existing licenses will not renew. Business Premium is still offered at a discount: $5.50 per user per month, paid yearly, as listed on 24 October 2026.

Can we put donor records into Copilot?

This guide says keep donor names, addresses, and confidential notes out of prompts and files by default. Microsoft describes Copilot Chat as secure AI chat, but your data policy, donor promises, and contracts decide what goes in. This is not legal, tax, or gift-acceptance advice.

Who approves outputs?

The development director for every board report, appeal, and ask amount, the database manager for every gift record, the grants manager for every proposal, and the executive director for every license purchase, agent, and funder submission.

Optional next step (if seats overlap)

If your organization pays for Microsoft 365 plans, Copilot add-ons, a donor CRM with built-in AI, and other chat seats that all draft the same reports, map that overlap before adding another seat. Map the overlap with the $19 AI toolkit audit or the $9 AI toolkit spreadsheet. Email Audit $19 or Toolkit spreadsheet $9.

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