- A
Microsoft Enterprise Agreement
Why wrong: The Enterprise Agreement is a volume licensing contract for large commercial customers, not specifically for nonprofits.
- B
Microsoft Open Licensing
Why wrong: Open Licensing is a volume licensing program for small and medium businesses, but it does not offer nonprofit discounts.
- C
Microsoft Nonprofit Program
This program offers eligible nonprofits donated and discounted subscriptions to Microsoft cloud services.
- D
Microsoft Cloud Solution Provider (CSP) program
Why wrong: CSP is a partner program for reselling Microsoft cloud services; it does not directly provide discounts to end customers.
MS-900 Describe Microsoft 365 pricing and support Practice Question
This MS-900 practice question tests your understanding of describe microsoft 365 pricing and support. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A registered nonprofit organization with 100 employees wants to use Microsoft 365 Business Basic at no cost. Which program should they apply for to be eligible for donated or discounted subscriptions?
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 Nonprofit Program
Option C is correct because the Microsoft Nonprofit Program provides eligible nonprofit organizations with donated or discounted subscriptions to Microsoft 365 Business Basic (and other products). A registered nonprofit with 100 employees qualifies for up to 10 donated licenses of Microsoft 365 Business Basic (or equivalent) and can purchase additional licenses at a significant discount. This program is specifically designed to support nonprofit missions by reducing technology costs.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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 Enterprise Agreement
Why it's wrong here
The Enterprise Agreement is a volume licensing contract for large commercial customers, not specifically for nonprofits.
- ✗
Microsoft Open Licensing
Why it's wrong here
Open Licensing is a volume licensing program for small and medium businesses, but it does not offer nonprofit discounts.
- ✓
Microsoft Nonprofit Program
Why this is correct
This program offers eligible nonprofits donated and discounted subscriptions to Microsoft cloud services.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Microsoft Cloud Solution Provider (CSP) program
Why it's wrong here
CSP is a partner program for reselling Microsoft cloud services; it does not directly provide discounts to end customers.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse volume licensing programs (Enterprise Agreement, Open Licensing) or partner programs (CSP) with the dedicated nonprofit donation program, failing to recognize that only the Microsoft Nonprofit Program offers free or heavily discounted subscriptions specifically for eligible charitable organizations.
Detailed technical explanation
How to think about this question
The Microsoft Nonprofit Program uses a validation process through TechSoup or direct verification to confirm an organization's nonprofit status (e.g., 501(c)(3) in the US). Once validated, the tenant is tagged with a special 'Nonprofit' attribute in Azure AD, which triggers discounted SKUs and up to 10 free licenses of Microsoft 365 Business Basic (or Office 365 E1) per tenant. This is enforced via licensing policies in the Microsoft 365 admin center, where the 'Nonprofit' flag enables special pricing tiers that are not available through standard commercial licensing channels.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this MS-900 question test?
Describe Microsoft 365 pricing and support — This question tests Describe Microsoft 365 pricing and support — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Microsoft Nonprofit Program — Option C is correct because the Microsoft Nonprofit Program provides eligible nonprofit organizations with donated or discounted subscriptions to Microsoft 365 Business Basic (and other products). A registered nonprofit with 100 employees qualifies for up to 10 donated licenses of Microsoft 365 Business Basic (or equivalent) and can purchase additional licenses at a significant discount. This program is specifically designed to support nonprofit missions by reducing technology costs.
What should I do if I get this MS-900 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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.
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