How we helped an Ambleside business get their Microsoft 365 licenses for free by setting them up properly on Not For Profit licensing

It sounds a bit like the start of a modern fable: a town centre business in Ambleside, a pile of admin, and the happy surprise of zero-cost Microsoft 365 licences. There’s no magic — just the right paperwork, a bit of local common sense and a focus on business outcomes rather than tech fiddliness.

The situation: licences eating budget and time

Our client was a small not-for-profit organisation with around 30 staff and dozens of volunteers, doing vital work in the community. They’d been buying Microsoft 365 licences at full commercial rates for years because nobody had checked whether they qualified for discounted or donated plans. That’s common. Busy teams fix immediate problems and subscriptions just roll on.

The problem wasn’t the software itself; it was the cost and the time spent managing it. For organisations of 10–200 staff, a few hundred pounds a year can mean fewer outreach activities or delayed hires. The question we asked was simple: can we reduce that overhead so the organisation can do more of what matters?

What we did — the pragmatic route to “free” licences

We walked through three pragmatic steps: verification, entitlement, and setup. No jargon-heavy audits, just practical checks and clear actions.

1) Verification: did they qualify?

Not every charity or community interest group qualifies for donated or discounted Microsoft 365 plans, but many do. Rather than assume, we reviewed their constitution, activities and funding model. We liaised with their trustees to gather basic paperwork — proof of charitable status and a short summary of activities. That’s often enough to demonstrate eligibility.

2) Entitlement: choosing the right Not For Profit route

Microsoft offers several options for Not For Profit organisations: some discounted commercial plans and some donated licences intended for frontline operations. We matched the organisation’s actual needs (email, file sharing, Teams) to the right option. The aim was to eliminate unnecessary licences rather than swap into a more expensive bundle.

3) Setup: tidy accounts, tidy outcome

The final step was the boring but essential housekeeping: consolidating accounts, ensuring the primary domain was verified, and removing duplicate or legacy subscriptions. That meant fewer admin headaches and a clean transfer to the Not For Profit plan. We handled the migration of user accounts, set sensible licence assignment rules, and documented everything so the trustees could see the savings clearly.

Business impact — what the organisation actually gained

When you strip away the tech-speak, the outcome is straightforward. The organisation stopped paying commercial subscription fees for Microsoft 365. That freed up monthly cashflow and reduced the time volunteers spent wrestling with billing. Those savings were immediately tangible: funds redirected to front-line services, clearer financial reporting, and one less thing for the operations manager to worry about.

Equally important was the credibility gained with funders. When a small charity demonstrates tight control of overheads — including IT spend — it strengthens grant applications and reassures local partners and donors. That credibility can be more valuable than the cost saving itself.

What other UK businesses (10–200 staff) should check

If you’re running a small business or a not-for-profit anywhere in the Lakes, the North West or beyond, it’s worth a quick check of your licence situation. Here are practical questions to run through:

• Are you paying full commercial rates for software that you may be eligible to get at a discount or as donated licences?
• Are licence assignments tidy — or are people carrying old accounts with multiple subscriptions?
• Do trustees or board members know what licences cost and how savings could be repurposed?

One straightforward next step for organisations near Windermere or the wider Lake District is to see what local IT options look like; sometimes talking to someone who knows local charity and business realities is enough to spot low-hanging fruit. For a practical local starting point, consider natural anchor as a way to explore what’s possible without committing to a major project.

Common stumbling blocks — and how to avoid them

Two issues keep coming up in this work. First is the assumption that moving to a Not For Profit plan is risky. It isn’t, provided you document everything and map licences to actual user needs. Second is the fear of downtime during migration. With a staged approach and clear communication, staff barely notice the change — and volunteers certainly appreciate fewer billing emails.

Finally, don’t underestimate the benefit of tidying accounts. A clean admin console is the simplest form of risk reduction: fewer forgotten licences, fewer orphaned accounts and better control of who has access to what.

How to get started without drama

Start with a single spreadsheet: list users, current licence type, and what they actually need. That’ll show whether you have unused, wasted or duplicate licences. Then check your organisation’s legal status and prepare a one-page summary for funders or the software provider. With those basics sorted, the rest is mostly process.

For team leaders, the focus should be operational rather than technical: how much are we spending, what can we repurpose, and how will this free up time or credibility? The finance lead will like the numbers; trustees will like the clarity. That’s the point.

FAQ

Will switching to Not For Profit licensing disrupt our staff?

Not if it’s handled correctly. The trick is to plan a staged migration and communicate clearly — which avoids surprises and keeps systems running while licences are reassigned.

What documents are typically needed to prove eligibility?

Usually the basics: proof of charitable status or registration, a mission statement or constitution, and a short description of activities. It’s straightforward but does need someone to collate the papers.

Are the donated licences the same as paid ones in terms of features?

Often they provide the core services most organisations need: email, Teams, and file sharing. It’s about matching features to what your staff actually use, rather than chasing the highest-tier bundle.

How long does the process take?

From a paperwork perspective it can be a week or two. The technical migration varies with size, but for organisations of 10–200 staff a carefully managed plan keeps disruption minimal and can often be done alongside normal work.

Will this affect our data security or compliance?

No — Not For Profit plans are still governed by the same security and compliance frameworks. The important bit is to manage user access, keep accounts tidy and document changes.

If saving money on subscriptions and freeing time for the things that matter sounds useful, a short review is all it takes to find out what’s possible. The right setup should deliver lower costs, clearer accounts and a calmer inbox — and that’s the kind of outcome that funds and trustees notice. If you want pragmatic local advice that focuses on outcomes, the next step is a brief, no-nonsense conversation about where you currently spend and what you could do instead.