mediumMultiple Choice
MS-900 Practice Question: A registered nonprofit organization with 100…
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?
⚠ Common exam trap
It's easy for candidates to 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.
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
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.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Microsoft Enterprise Agreement
Why it's wrong here
The Microsoft Enterprise Agreement (EA) is a volume licensing contract designed for large commercial organizations with 250+ employees, offering a three-year commitment with customized pricing and Software Assurance for on-premises and cloud products. It is a merchant agreement for enterprise purchasing, not a nonprofit benefit or eligibility framework. While a nonprofit could theoretically sign an EA, doing so would not convey the donated Azure credit or discounted M365 nonprofit pricing—it simply binds them to standard commercial terms. Thus, it's wrong because the EA channel is orthogonal to nonprofit-specific programs.
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Microsoft Open Licensing
Why it's wrong here
Microsoft Open Licensing was a perpetual license volume program for small-to-medium businesses, typically requiring only five or more desktops to qualify for tiered discounts on Office and Windows licenses. It never included nonprofit discounts, Azure credits, or donated subscriptions; it is a generic commercial licensing channel. Additionally, Open License was elevated to retirement in 2022, and even before that, it had no mechanism to validate nonprofit status or activate special offers. For a nonprofit seeking donated cloud services, this program is irrelevant and does not fulfill the scenario's requirement.
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Microsoft Nonprofit Program
Why this is correct
The Microsoft Nonprofit Program (also known as Microsoft for Nonprofits) is the correct fit because it is a dedicated licensing and discount framework for eligible registered charities, NGOs, and other qualifying nonprofit entities. It provides donated products such as a $3,500 annual Azure credit, plus discounted or donated Microsoft 365 subscriptions (e.g., M365 Business Premium at a reduced rate) after the organization passes Microsoft's eligibility validation. This program is the only one among the options that directly addresses the status of being a nonprofit with a cost-reduction benefit. Therefore, it directly answers the organization's need for a grant or discount on Microsoft cloud services.
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Microsoft Cloud Solution Provider (CSP) program
Why it's wrong here
The Cloud Solution Provider (CSP) program is a Microsoft partner program that lets authorized partners resell Microsoft cloud services, manage customer subscriptions, and provide billing and support through Partner Center. It is a transactional channel, not a discount or donation program for end customers; pricing and discounts depend on the partner and the customer's eligibility under other programs. A nonprofit can buy through a CSP, but it only receives nonprofit pricing if it is already registered and validated in the Microsoft Nonprofit Program. Thus, CSP alone is not the correct path to obtain nonprofit discounts, making this option wrong for the scenario.
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