The price hike will take effect on September 1 2022, and vary by degree depending on the specific subscription bundle. The most significant change will apply to the Office 365 E3 package, which will rise in price by almost 30% to $ 5.75/user/month.
Although Microsoft has only provided specific figures for US-based customers, the company has confirmed the rise will apply worldwide, with “local market adjustments” in some regions.
Microsoft 365 pricing
The move to raise prices for non-profit customers comes hot on the heels of a more broad-based price hike, announced last month. The change was described by Microsoft as the first “substantive Office 365 pricing update” since the launch of the productivity suite just over a decade ago.
In an FAQ post addressing the latest increase, Microsoft gestured towards the introduction of new Office 365 apps and services as justification for the change.
The company also said it believes both commercial and non-profit customers have recovered sufficiently from pandemic-related turmoil to shoulder the rise, even if conditions remain somewhat unpredictable.
“This is the right time to update our pricing. Although there are still questions and uncertainty, we see clear signs of economic recovery around the world,” wrote Microsoft.
“Moreover, over the past few years our competitors have increased prices, in some cases aggressively. We simply have a better story and proven track record of reinvestment in the product and consistently delivering new value to our customers.”
Despite the price hike, the rates for charities and other non-profits remains considerably lower than for typical commercial customers, with discounts as large as 75% across some packages.