10/06/2026
Software and Cloud Discounts for Non-Profits
Short answer: Google and Microsoft both run programs for non-profits, and both check eligibility before granting anything. A 501(c)(3) is the usual starting point, but several kinds of organization are excluded. Check the current rules on each company's own page before you build a budget around a discount.
Google for Nonprofits
In the United States, Google says an organization must be registered with the IRS as exempt from federal income tax under Section 501(c)(3). It says a governmental entity or organization, a hospital or health care organization, and a school, academic institution or university are not eligible, and that fiscally sponsored organizations without their own 501(c)(3) status are currently not eligible (Google for Nonprofits Help: Eligibility guidelines, United States, page undated).
Microsoft for Nonprofits
Microsoft says eligible organizations include nonprofit or non-governmental organizations with recognized legal status equal to 501(c)(3) status in the United States, public libraries that provide general library services without charge, public museums, and certain U.S. healthcare organizations that it names. It lists as ineligible, among others, governmental organizations, schools, colleges and universities, professional, commerce and trade associations, and individuals (Microsoft Learn: Eligibility, Microsoft for Nonprofits, page last updated May 2026).
Two rules are easy to miss. Microsoft allows one validated grant tenant per organization. And it says it can reduce or remove access if an organization fails to maintain at least 85% active usage of all granted licenses, among other examples of program abuse. Microsoft also reserves the right to amend its eligibility guidelines at any time without notice (same page).
What to check before you plan around a program
Is your status recognized?
Both companies tie eligibility to U.S. tax-exempt status. Have your documentation and legal name match exactly.
Does your type of organization qualify?
Schools, governments and some associations are excluded, even when they are nonprofit in nature.
Are you fiscally sponsored?
Google says fiscally sponsored organizations without their own 501(c)(3) status are currently not eligible.
Who may use the licenses?
Read each program's terms on who may use grants and discounts, and keep licenses in use. Unused ones can put eligibility at risk.
What happens if terms change?
Microsoft says it may amend its guidelines without notice. Plan so a change does not break a critical system.
Is this the right tool at all?
A discount on the wrong system is still the wrong system. Decide what you need first.
Decide what you need before you chase a discount
Discounts are a reason to look closer, not a reason to pick a tool. Start with the job to be done, then check whether a program lowers the price of the right option. Our software subscription audit is a way to find what you already pay for, and choosing business systems and tools covers how to weigh options.
Brandager aims to be generous toward non-profits. If you want an independent view on systems or software, contact us. The first conversation is a general get-to-know-each-other, and we can talk by phone or video.
FAQ
Do all non-profits qualify for Google for Nonprofits?
No. In the United States Google requires 501(c)(3) status and says governmental organizations, hospitals and health care organizations, schools and universities are not eligible.
Can a fiscally sponsored organization use Microsoft for Nonprofits or Google for Nonprofits?
Google says fiscally sponsored organizations without their own 501(c)(3) status are currently not eligible. Check Microsoft's current rules for your situation.
Do the eligibility rules change?
Yes. Microsoft says it may amend its guidelines at any time without notice, so check the current page before you rely on a program.
Researched and drafted with AI, then reviewed and edited by the site's editors.