License & Subscription Issues

Microsoft 365 Business Premium vs E1 vs Nonprofit Portal Licenses Explained

Bushra ParveenBushra Parveen Oct 22, 2026 868 views

Question details

Clarify the functionality and service inclusions of Microsoft 365 Business Premium, Office 365 E1, and Nonprofit Portal licenses within the admin center.

Microsoft 365 Business Premium vs E1 and Nonprofit Portal Licenses
Product
Microsoft 365
Device & OS
not provided
Scenario
Reviewing active subscriptions in the Microsoft 365 admin center and determining which licenses provide access to desktop Office applications.
Observed behavior
Organizations see multiple license types in their admin center and are unsure if the Nonprofit portal license provides actual Microsoft 365 services like E1 or Business Premium.
Before you start

Log in to your Microsoft 365 Admin Center with global or billing administrator credentials to follow along and view your organization's active licenses.

Solution 1Recommended

Identify and Assign the Correct Microsoft 365 Licenses

Review the specific features of each license type in the admin center to ensure users get the correct application access.

It is crucial to understand that not all items listed under your 'Licenses' tab provide software access. While Business Premium and E1 are product licenses, the Nonprofit Portal license serves a purely administrative function.

1
Navigate to the Licenses Page

Log in to the Microsoft 365 admin center, expand the left-hand navigation menu, click on 'Billing', and select 'Licenses' to view your current inventory.

2
Review Microsoft 365 Business Premium

Assign this license to users who need full, installable desktop applications (Word, Excel, PowerPoint), advanced cloud services, device management (Intune), and premium security features.

3
Review Office 365 E1

Assign the E1 license to users who only require web-based Office applications and cloud services (like OneDrive and Teams). Note that E1 does not include permission to install desktop Office applications.

4
Understand the Nonprofit Portal License

Identify the 'Nonprofit Portal' item in your list. Do not assign this expecting software access; it is simply a gateway pass that allows eligible organizations to log into the nonprofit portal to view grants, offers, and discounts. It does not provide any Microsoft 365 services.

Identify and Assign the Correct Microsoft 365 Licenses
Accessing the Nonprofit Portal: If you need to view your available grants or discounts, you can access the portal directly by navigating to https://nonprofit.microsoft.com/en-us/getting-started.
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Frequently Asked Questions

Can I install desktop Office applications with an Office 365 E1 license?

No, Office 365 E1 only includes web-based Office applications and cloud services. To install desktop apps, you must upgrade to a plan like Microsoft 365 Business Standard, Business Premium, or Office 365 E3/E5.

Why does a Nonprofit Portal license show up in my Microsoft 365 admin center?

The Nonprofit Portal license is automatically provisioned for eligible non-profit organizations. It acts as an administrative entitlement allowing access to the Microsoft nonprofit portal to view specific grants and offers, rather than functioning as a standard software license.

Does the Nonprofit Portal license cost money?

No, the Nonprofit Portal access license is entirely free. It simply verifies your organization's eligibility to access discounted or donated Microsoft offers through their dedicated getting-started portal.