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MS-900 Practice Question: A non-profit organization with 50 employees needs…
A non-profit organization with 50 employees needs business-grade email, online versions of Office apps, and 1 TB of cloud storage per user. They have a very limited budget and are eligible for Microsoft's non-profit program. Which Microsoft 365 plan provides these features at the lowest cost?
⚠ Common exam trap
MS-900 often tests plan-tier feature boundaries — candidates pick Business Standard assuming 'Office apps' means desktop Office, but the question says 'online versions,' which Business Basic already includes at a lower price.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Microsoft 365 Business Basic (non-profit)
Microsoft 365 Business Basic (non-profit) includes Exchange Online email, web/mobile versions of Office apps, and 1 TB of OneDrive storage per user at the lowest non-profit price point. It matches every stated requirement — business email, online Office apps, and 1 TB cloud storage — without paying for desktop Office licenses the non-profit does not need.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Microsoft 365 Business Basic (non-profit)
Why this is correct
Microsoft 365 Business Basic (nonprofit) provides each of the 50 users with a 50 GB Exchange Online mailbox, web and mobile versions of Office apps (Word, Excel, PowerPoint), Microsoft Teams, SharePoint, and 1 TB of OneDrive storage. It satisfies the business email, online Office, and cloud storage requirements without paying for installed desktop applications. Nonprofit pricing through Microsoft's eligibility program drastically reduces the per-user cost, making it the most cost-effective licensed plan for this organization.
- ✗
Microsoft 365 Business Standard (non-profit)
Why it's wrong here
Microsoft 365 Business Standard includes everything in Business Basic but also adds fully installed desktop Office applications such as Outlook, Word, Excel, PowerPoint, and Access/Publisher where available. This plan is ideal for users who frequently work offline or need the full Office client, but those capabilities are not part of the stated requirement. Because the nonprofit only needs online productivity tools and cloud storage, the extra per-user licensing cost for Microsoft 365 Business Standard is unnecessary and therefore makes it an incorrect choice for this scenario.
- ✗
Microsoft 365 E1 (non-profit)
Why it's wrong here
Microsoft 365 E1 is an enterprise subscription that provides Exchange Online, SharePoint, Teams, OneDrive, and Office for the web, similar to Business Basic, but it is packaged under enterprise licensing with a different feature set and higher list pricing. It omits desktop Office apps while including additional enterprise-grade compliance, identity, and administration capabilities that a 50-employee nonprofit does not need. Even with the nonprofit discount, E1 typically costs more than Business Basic and is therefore over-specified for delivering just email, online Office, and cloud storage.
- ✗
Microsoft 365 E3 (non-profit)
Why it's wrong here
Microsoft 365 E3 combines desktop Office apps with comprehensive enterprise security and compliance features, such as eDiscovery, legal hold, archived mailboxes, information protection, and advanced threat protection. This plan is designed for organizations that must meet strict regulatory obligations, not for a 50-person nonprofit that simply needs business email and online document storage. Its license cost is substantially higher than Business Basic under any pricing, including nonprofit discounts, so choosing E3 would far exceed both the requirements and the necessary budget.
Go deeper
Related to this question
Learn chapter
Microsoft Defender for Office 365
Key term
User
A user is any person, system, or device that interacts with an IT service, resource, or identity system, typically authenticated through credentials and authorized to perform specific actions.
Key term
Cloud storage
Cloud storage is a service that lets you save data on remote servers accessed over the internet instead of on your computer's hard drive.
About these practice questions
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
This MS-900 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MS-900 exam.