Guide · As of July 2026
Microsoft 365 alternative for associations and federations.
Microsoft has scrapped the free full licences for non-profit organisations. Here is the honest comparison: what Microsoft 365 costs associations today, what a European alternative delivers, and when you are better off staying with Microsoft.
MS 365 Business Basic
0 €
per user per year
Stays free, but only with web and mobile apps.
MS 365 Business Premium
≈ 57 €
per user per year
Was free for non-profits; since 1 July 2025 the grant runs out at the next contract renewal.
Connecteeva
46,80 €
per account per year
Hosted in Germany, open source, cancellable anytime on the monthly plan.
Why now
The grant is gone. The task remains.
For years it was simple: as a recognised non-profit association you got Microsoft 365 Business Premium for free, for up to ten users according to consistent trade reports. Those days are over. On 1 July 2025 Microsoft scrapped the free non-profit licences for Business Premium and Office 365 E1, taking effect from the first contract renewal after that date.
What remains is a choice with a catch:
- Pay. Business Premium costs non-profits around 57 € per user per year. According to the same reports the grant covered at most ten seats, so an organisation with 20 mailboxes previously paid nothing for ten of them, and in future pays for all twenty. That is around 570 € a year that was not in the budget before.
- Or stay stuck. Business Basic stays free for up to 300 users, but only with web and mobile apps. No desktop Word, no desktop Excel. For volunteers working at home on their own computer, that is a noticeable limitation.
On top of that comes an issue that concerns more and more organisations regardless of price: data sovereignty. Microsoft is a US company and subject to the US CLOUD Act; US authorities can demand that data be handed over, even when it sits in European data centres. For organisations that manage member data, counselling records or health information, that is more than a footnote. More on this on our security page.
The comparison
Three options, laid side by side.
The free Business Basic, the paid Business Premium with the non-profit discount, and a comparably equipped Connecteeva account, including where Microsoft comes out ahead.
| Merkmal | Microsoft 365 Business BasicNon-profit · free | Microsoft 365 Business PremiumNon-profit · paid | Connecteevano application process |
|---|---|---|---|
| Price per user per year | 0 €donation-based, up to 300 users | ≈ 57 €approx. 4,77 € a month with annual billing | 46,80 €3,90 € a month: account, email, files and documents |
| Email, calendar, contacts | Yes | Yes | Yesencryption via the open standards PGP and S/MIME, provided the other side uses them too, in the browser or with Thunderbird, Outlook, Apple Mail |
| Office programs | Web and mobile onlyno desktop Word, no desktop Excel | Microsoft Office as a desktop and web version | OX Documents in the browserlocally with LibreOffice, OpenOffice or Apple Pages |
| Storage per user | 1 TBOneDrive, mailbox counts separately | 1 TBOneDrive, mailbox counts separately | 20 GBshared between mailbox and files, with no upfront split; expandable for 1,00 € per 10 GB per month |
| Operator and jurisdiction | US companysubject to the US CLOUD Act, even with data centres in the EU | US companysubject to the US CLOUD Act, even with data centres in the EU | German companyhosting in Germany, not subject to the US CLOUD Act |
| Open Source | No | No | Yesthe specialist services are based on open-source software; the portal that connects them we build ourselves |
| Mapping the federation structure | Delegated administration via Microsoft Entra IDAdministrative Units, created and maintained separately per level | Delegated administration via Microsoft Entra IDAdministrative Units, created and maintained separately per level | Hierarchical user managementorganisation structure mapped, admin rights delegable, portal in your own branding |
| Contract commitment | none | annual price requires a one-year commitment | cancellable monthly on the monthly plan |
| Support | Phone and web support from Microsoft | Phone and web support from Microsoft | Personal email support from Berlinusually a reply within 24 hours on working days, a dedicated contact from larger user counts on, no phone hotline |
As of July 2026. Microsoft prices per microsoft.com (non-profit offers, Germany); Microsoft changes its terms regularly, so check the current pricing page if in doubt. All Connecteeva prices are on our pricing page.
Stay or switch
Where Microsoft stays the better choice. And where we are.
On the left, the cases where Microsoft stays the better choice. On the right, the ones where switching pays off.
Stay with Microsoft if …
There are good reasons to change nothing.
- You genuinely need the original. For example because of Excel macros, complex mail merges or federation templates that do not work reliably in free alternatives such as LibreOffice.
- Your line-of-business systems require Microsoft accounts. Or your paid staff are firmly tied into partners’ Teams structures.
- Business Basic is entirely enough for you. You only need web mail and the occasional document in the browser? Then stay free and do not switch just for the sake of switching.
If one of these points applies to you, Microsoft is the right choice for you.
Switch if …
Five reasons that speak for Connecteeva.
- You want to know where your member data sits. Connecteeva is hosted in Germany and run by a German company, GDPR-compliant under German law, and not subject to the US CLOUD Act.
- You want predictable costs instead of a licensing jungle. Every service with its own price, cancellable anytime on the monthly plan. No grant applications, no renewal surprises, no licence management across three portals.
- Your structure is more than an address list. Regional federation, district branch, local group, Connecteeva maps hierarchies with delegable admin rights.
- You want to be able to talk to a person. Support here means an email to a team in Berlin that knows your organisation and does not need your structure explained afresh every time.
- You do not want to become dependent. Open-source services and open standards mean the programs you are used to keep working, and your data can be exported at any time.
How Connecteeva is built for associations and federations is shown by the page for federations and the one for volunteering.
How the switch works
No data loss, no day offline.
Your Connecteeva environment is set up with your domain while Microsoft 365 keeps running as normal. Email, calendars and contacts move across via standard protocols, files from OneDrive and SharePoint into cloud file storage. Nothing is switched off until the new system is in place.
The full process in five steps → How long it takes depends on the number of mailboxes; after taking stock we give you a firm date.
Common questions
What associations ask us most often.
Eight answers on prices, the legal situation and migration, short and without sales prose.
Isn’t Microsoft 365 free for associations?
Only in a limited way. On 1 July 2025 Microsoft scrapped the free non-profit licences for Business Premium (up to ten licences, according to consistent trade reports) and Office 365 E1. Business Basic stays free for up to 300 users, but only with web and mobile apps, without the desktop versions of Word, Excel and PowerPoint.
What does Microsoft 365 cost non-profit organisations today?
Business Premium costs recognised non-profits approx. 4,77 € per user per month with annual billing, around 57 € per user per year (as of July 2026). This requires recognition as a non-profit organisation by Microsoft.
What does Connecteeva cost by comparison?
There are no packages: an account costs 0,10 € a month, and for each person you add the services they need. A mailbox with calendar, contacts and encryption costs 1,80 €, file storage 1,00 €, documents in the browser 1,00 €, per account per month. A setup that comes close to Business Premium therefore lands at 3,90 € a month, around 47 € a year. All prices net. Every service can be booked individually; the full list is on the pricing page.
Is Connecteeva GDPR-compliant, and what about the CLOUD Act?
Yes. Connecteeva is operated by czichos.net GmbH in Berlin and hosted in Germany. As a German company hosting in Germany, Connecteeva is not subject to the US CLOUD Act. Microsoft is a US company; US authorities can require it to hand over data, even when that data sits in European data centres. More on this on the security page.
Does everyone in the association have to get the same services?
No. For each person you can decide individually which services they get. Someone who coordinates a lot gets video conferencing and chat, someone who only writes messages gets a mailbox, that is the normal case, not the exception. You set this yourself in the administration, or we take care of it.
What does the switch cost?
If we only set up the accounts and you build things yourself, it costs nothing. If we handle the migration, we bill by effort, 89 € per hour, charged in working days; we estimate the scope beforehand. From a two-year term on, the migration fee is waived entirely.
Can we bring our emails and files from Microsoft 365 with us?
Yes. Email, calendars and contacts can be migrated via standard protocols, and files from OneDrive and SharePoint are taken over into cloud file storage. The switch runs in parallel operation, so your organisation stays reachable throughout. We support the migration personally.
What will we be missing with Connecteeva compared with Microsoft 365?
Microsoft’s desktop programs (Word, Excel, PowerPoint) and terabyte-sized storage allowances are not included. Connecteeva offers Office in the browser (OX Documents) and storage shared between mailbox and files, expandable for 1,00 € per 10 GB per month. You can still work locally thanks to open standards: email and calendar with Thunderbird, Outlook or Apple Mail, documents with LibreOffice, OpenOffice or Apple Pages. Only those who absolutely need Microsoft’s original, for example because of Excel macros, are better off with Business Premium.
Who is writing this
Yes, we are biased. That is why the comparison reads as it does.
This guide comes from czichos.net GmbH in Berlin, the team behind Connecteeva. For many years we have run the IT of Germany’s largest social welfare federation and know association and federation structures from daily practice.
And yes: we sell one of the solutions compared here. That is exactly why the comparison is written so that it holds up even if you end up choosing Microsoft. There is more about us on the About page.
Not sure what fits? Tell us about your organisation.
A short email is enough: how many accounts do you need, what do you use today, where does it pinch? You get an honest assessment back, even if it says: stay with Microsoft.
No contract and no payment details. You decide whether it stays an enquiry or you try Connecteeva right away.
Prefer to reach us directly? Send an email · call 030 994048000