Microsoft 365 for small businesses and charities can make everyday work simpler, safer and more connected.
However, it is easy to end up with the wrong licences, unused features or a mixture of old devices and disconnected systems. This is especially common in small organisations where one person may be managing IT alongside several other responsibilities.
The good news is that you do not need to change everything at once. Start by understanding what your organisation uses now, where the risks are and which Microsoft 365 tools could make the biggest practical difference.
Why is older Microsoft software now a security concern?
Microsoft ended standard support for Windows 10, Office 2016 and Office 2019 on 14 October 2025.
The software may continue to open and run. However, unsupported products no longer receive normal security fixes. As new weaknesses are discovered, the risk of using them grows.
For a small business, that could lead to disruption, financial loss or problems meeting a customer’s security requirements.
For a charity, it could also put information about staff, volunteers, donors or people using its services at risk.
Start by checking:
- Which version of Windows each computer uses
- Whether devices can run Windows 11
- Which versions of Word, Excel and Outlook are installed
- Whether every active user has the right licence
- Whether former staff or volunteers still have access
- Where important files are stored and backed up
Extended support options may be available in some circumstances, but they should normally support a planned transition rather than replace one.
Cosmic’s tech team can help you audit your devices, licences and current Microsoft 365 setup.
Microsoft 365 options for charities
Eligible charities and nonprofit organisations may be able to access Microsoft grants and discounted licences.
Microsoft currently provides eligible nonprofits with up to 300 granted Microsoft 365 Business Basic licences at no cost. These include web and mobile versions of key applications, professional email, Teams, cloud storage and Microsoft 365 Copilot Chat. Eligibility and availability must be confirmed through the Microsoft for Nonprofits programme.
The former Microsoft 365 Business Premium grant has ended. Eligible charities can instead access discounts of up to 75% on a selection of Microsoft 365 nonprofit licences, including Business Standard and Business Premium. This can make it easier to give different people the right tools without paying full commercial prices.
This change makes licence planning more important.
A charity might use:
- Business Basic for volunteers or team members who only need email, Teams and browser-based applications
- Business Standard for staff who need desktop versions of Word, Excel, PowerPoint and Outlook
- Business Premium for people or devices requiring stronger security and management
- A mixture of licences based on different roles
Do not assume that every person needs the most expensive option. However, do not choose a cheaper licence without considering security, device management and how each person works.
This information is current as of 30 July 2026. Microsoft can change eligibility rules, grants, discounts, plan features and prices, so check the latest Microsoft nonprofit plans and pricing if you are reading this later or before deciding.
Which Microsoft 365 business plan might you need?
Microsoft 365 Business plans are designed for organisations with up to 300 users. Different plans provide different levels of functionality.
Microsoft 365 Business Basic
Business Basic can suit organisations that mainly work in a web browser.
It includes services such as:
- Professional email
- Microsoft Teams, where included in the selected plan
- OneDrive cloud storage
- SharePoint
- Web and mobile versions of Word, Excel and PowerPoint
- Microsoft 365 Copilot Chat
It does not normally include the full desktop versions of the main Office applications.
Microsoft 365 Business Standard
Business Standard adds desktop versions of Word, Excel, PowerPoint and Outlook.
It may suit organisations whose staff regularly work with complex documents or spreadsheets, need offline access or use features that are not available in the browser versions.
Microsoft 365 Business Premium
Business Premium combines the productivity tools in Business Standard with stronger security and device-management capabilities.
These include tools from Microsoft Intune and Microsoft Defender. They can help organisations manage devices, protect accounts and respond to threats.
Business Premium can be particularly useful when people:
- Work remotely
- Use organisation-owned laptops
- Handle sensitive information
- Access files from several locations
- Need stronger protection against phishing and malicious attachments
The right choice depends on your people, devices, information and level of risk.
Better security starts with the setup
Moving to Microsoft 365 does not make an organisation secure by itself.
Security depends on how accounts, devices, sharing settings and administrator permissions are configured.
Important steps include:
- Turning on multifactor authentication
- Giving administrator access only to people who need it
- Removing accounts promptly when someone leaves
- Reviewing external file sharing
- Keeping devices updated
- Protecting and testing backups
- Training people to recognise phishing attempts
- Reviewing security alerts regularly
Microsoft has also introduced Baseline Security Mode. This gives administrators a central way to apply recommended protections across services such as Exchange, Teams, OneDrive, SharePoint and Microsoft Entra.
It can provide a useful starting point. However, settings should still be reviewed against your organisation’s needs before they are enforced.
Use Teams, OneDrive and SharePoint with a clear purpose
Microsoft 365 works best when everyone understands where information belongs.
Without a simple structure, files can become scattered across personal OneDrive accounts, Teams conversations, email attachments and SharePoint sites.
A practical approach is:
- Use OneDrive for an individual’s working files
- Use Teams for conversations, meetings and day-to-day collaboration
- Use SharePoint for shared organisational documents and information
- Agree file names and folder structures
- Set clear permissions for confidential information
- Avoid sending multiple email attachments when a shared link will work
For charities, Teams can also support communication with trustees, project teams and volunteers. However, guest access should be controlled, and confidential information should only be shared with the right people.
One Microsoft Teams feature worth exploring
Microsoft Teams meeting recap can bring recordings, transcripts, shared files, notes and follow-up tasks into one place after a meeting.
Meeting Recap adds AI-supported summaries and insights. It can help people catch up on a meeting, revisit decisions and identify possible actions.
This may be useful for:
- Staff meetings
- Trustee or board meetings
- Project reviews
- Client meetings
- Volunteer coordination
- Partnership meetings
However, Meeting Recap is not included with every Microsoft 365 subscription. Users generally need Microsoft Teams Premium or Microsoft 365 Copilot, as well as an eligible Teams licence.
Meetings also need to be recorded or transcribed. Before using these features, tell participants clearly and consider whether the meeting contains sensitive or confidential information.
Finally, check every AI-generated summary. It may miss context or misunderstand what someone has said.
Where Microsoft Copilot can help
Microsoft 365 Copilot Chat is now included with eligible Microsoft 365 plans. It provides secure AI-powered chat for work. Additional paid Copilot licences provide deeper integration with applications such as Word, Outlook, Excel and Teams.
Depending on your licence, Copilot may help you:
- Summarise a document
- Draft an email
- Turn notes into a first version of a report
- Prepare questions for a meeting
- Analyse information in a spreadsheet
- Summarise a Teams discussion
- Find information stored across Microsoft 365
Where Microsoft Copilot can help
Microsoft 365 Copilot Chat is now included with eligible Microsoft 365 plans. It provides secure AI-powered chat for work. Additional paid Copilot licences provide deeper integration with applications such as Word, Outlook, Excel and Teams.
Depending on your licence, Copilot may help you:
- Summarise a document
- Draft an email
- Turn notes into a first version of a report
- Prepare questions for a meeting
- Analyse information in a spreadsheet
- Summarise a Teams discussion
- Find information stored across Microsoft 365
For charities, it might help draft a volunteer update, summarise consultation notes or create the first outline of a funding report.
For businesses, it might help prepare customer emails, meeting notes, proposals or internal guidance.
AI should support people rather than replace their judgement. Do not enter sensitive personal, financial or beneficiary information until you understand how your organisation’s version of Copilot handles data and access.
Always check facts, figures, tone and context before using an AI-generated response.
What are Microsoft AI agents?
AI agents can carry out a series of connected tasks rather than answering only one question.
For example, an agent might collect information, organise it and prepare a draft response. More advanced agents may work across several applications.
Microsoft Agent 365 became generally available in May 2026. It provides tools for organisations to observe, manage and secure AI agents.
This is an important development, but most small businesses and charities do not need to begin with advanced agents.
First, make sure you have:
- Well-organised files
- Appropriate access permissions
- Clear data-handling rules
- Secure accounts and devices
- A specific problem worth solving
- People responsible for checking the results
Starting with one low-risk Copilot task is often more useful than introducing an agent without clear governance.
Five practical uses of Microsoft 365
- Manage shared files – Store team documents in the right OneDrive, Teams or SharePoint location. This reduces duplicate files and helps people find the latest version.
- Improve communication – Use Teams channels for defined projects or areas of work instead of placing every conversation in email.
- Manage simple tasks – Use Microsoft Planner or shared task lists to record actions, owners and deadlines.
- Collect information – Microsoft Forms can help collect event registrations, feedback, volunteer availability or internal requests. Check what information you are collecting and avoid requesting personal data you do not need.
- Automate routine work – Power Automate can connect common tasks. For example, it can notify someone when a form is completed or move an approved document to the correct folder. Start with a simple process. Test it carefully before relying on it for important work.
A simple Microsoft 365 action plan
You do not need to adopt every Microsoft feature.
Instead, follow these steps.
First, check your foundations
List your users, devices, licences and important systems. Identify unsupported software, unused accounts and unclear ownership.
Next, address security risks
Prioritise multifactor authentication, software updates, administrator accounts, backups and access for former staff or volunteers.
Then, organise your information
Decide where team files should be stored. Review who can access confidential documents.
Choose one useful improvement
This might be:
- Setting up a shared Teams space
- Moving documents into SharePoint
- Improving device security
- Testing a meeting recap
- Automating a simple internal task
- Providing Microsoft 365 training
Finally, review your licences
Match licences to roles instead of giving everybody the same package. Charities should also confirm their eligibility for Microsoft’s current grants and discounts.
How can Cosmic help?
Cosmic supports small businesses, charities, CICs and other organisations with Microsoft 365.
Our support can include:
- Reviewing your current licences and costs
- Helping eligible charities understand nonprofit options
- Auditing accounts, devices and security risks
- Moving email and files into Microsoft 365
- Setting up Teams, OneDrive and SharePoint
- Configuring device and account protection
- Supporting a move away from unsupported software
- Training staff, trustees and volunteers
- Exploring safe and useful ways to use Copilot
- Providing ongoing IT support
We explain the options in plain English and help you choose what fits your organisation. You will not be pushed towards features or licences you do not need.
Explore Cosmic’s IT support and managed services to arrange a conversation with our tech team.
Take one useful step
Microsoft 365 for small businesses and charities can improve security, collaboration and day-to-day productivity. The greatest benefit comes from choosing the right licences, setting them up securely and helping people use the tools with confidence.
Start with one useful step. Review an old device, remove an unused account, organise a shared folder or check whether your charity qualifies for nonprofit licensing.
Small improvements can make your organisation safer, more efficient and better prepared for what comes next.