MS-900 Practice Question: Describe Microsoft 365 pricing, licensing, and support
Your organization is a non-profit. How can you obtain Microsoft 365 licenses at a reduced cost?
⚠ Common exam trap
Many exam-takers assume any 'Nonprofit' labeled SKU (like Option B) is automatically available at a discount, when in reality the discount is contingent on prior enrollment in the Microsoft Nonprofit Program, not on selecting a specific product name.
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
✓
Apply for Microsoft’s non-profit program and purchase Microsoft 365 Business Premium at a discounted rate
Microsoft offers a Nonprofit Program that provides eligible organizations with discounted or donated Microsoft 365 licenses. After applying and being approved, nonprofits can purchase Microsoft 365 Business Premium at a significantly reduced rate, which includes advanced security and compliance features beyond the basic plans.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Purchase Microsoft 365 Business Basic from the Microsoft 365 admin center
Why it's wrong here
Purchasing Microsoft 365 Business Basic from the Microsoft 365 admin center is not the correct path for a nonprofit. This is a commercial plan with no built-in nonprofit discount, so you would be charged the full retail price. Even if your organization is already eligible, the admin center does not automatically apply discounts; you must first complete the Microsoft Nonprofit Program application and verification process. Business Basic is also a lower-tier product, not the typical deeply discounted plan offered to qualified nonprofits.
- ✗
Purchase Microsoft 365 Nonprofit Business Basic from the Microsoft 365 admin center
Why it's wrong here
There is no product SKU called 'Microsoft 365 Nonprofit Business Basic' in Microsoft's catalog. Once your organization is approved for the Microsoft Nonprofit Program, discounted offers such as 'Microsoft 365 Business Basic for Nonprofits' appear, but they are still the standard commercial Business Basic plan with a discounted price applied after eligibility verification. You cannot purchase any nonprofit-discounted plan from the admin center until your nonprofit status has been formally validated through Microsoft's enrollment portal. Therefore, selecting a nonexistent plan is invalid.
- ✓
Apply for Microsoft’s non-profit program and purchase Microsoft 365 Business Premium at a discounted rate
Why this is correct
The correct method is to apply for Microsoft's Nonprofit Program through the Microsoft for Nonprofits portal and pass eligibility verification. Once approved, you gain access to donated or heavily discounted subscriptions, and Microsoft 365 Business Premium is one of the discounted plans available to qualified nonprofits. This plan includes desktop versions of Office apps plus advanced security and compliance features. The discount is exclusively tied to your verified nonprofit status, so this application-first approach is the only legitimate way to obtain the reduced pricing.
- ✗
Use volume licensing through a Microsoft partner
Why it's wrong here
Volume licensing through a Microsoft partner is a procurement mechanism used by both commercial and nonprofit customers, but it does not by itself guarantee nonprofit pricing. To receive discounted nonprofit rates, your organization must already be enrolled in Microsoft's Nonprofit Program with validated eligibility; the partner then orders licenses under that specific program. Without this prior approval, volume licensing quotes standard commercial prices, so this route would not provide the intended discount. Additionally, volume licensing is not the required or primary path for nonprofits to purchase Microsoft 365.
Go deeper
Related to this question
About these practice questions
One of 794 original MS-900 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.