Most South African NPOs that ask about Microsoft licensing get one
quote. A reseller calls it “nonprofit pricing” and leaves it at that.
What they don’t explain is that three distinct licensing routes exist —
and the differences between them are significant.
Understanding which route applies to your situation could save your
organisation a substantial amount on software you need anyway.
The three
routes: donated, Open Value Nonprofit, and CSP
The donated tier is accessed exclusively through
TechSoup South Africa (techsoupsouthafrica.org), the only authorised
local distributor for Microsoft’s donated software programme. Under this
programme, Microsoft donates the licence itself. Your NPO pays only an
administrative handling fee to TechSoup — not the commercial licence
cost.
This is not a discount. It is a donation. A discounted product still
carries commercial margin. A donated product costs what it costs
TechSoup to process the request. For on-premises server products like
Windows Server and SQL Server, the saving compared to commercial pricing
is typically 85–90% — the absolute rand amount varies with exchange
rates, but the magnitude is consistent.
The Open Value Nonprofit route is a volume licensing
programme available through Microsoft-authorised resellers. It requires
a minimum of five licences and is structured as a 1, 2, or 3-year
agreement. Software Assurance is available as an optional add-on, but
must be elected at the time of original purchase — it cannot be added
partway through the agreement term. This is the route resellers
typically quote for organisations that need perpetual on-premises
licences with volume pricing — it is meaningfully cheaper than standard
commercial rates.
Important distinction: Open Value Nonprofit is a
separate programme from the Open License programme,
which Microsoft retired in January 2022. If a reseller quotes Open
License, that is a defunct procurement vehicle and you should ask for a
re-quote. Open Value remains active.
The CSP (Cloud Solution Provider) route is the
primary path for Microsoft 365 subscriptions. CSP pricing for M365
subscriptions is below commercial rates and is available through
authorised partners including TechCloud. For perpetual on-premises
licences, CSP does not match either the donated or Open Value Nonprofit
pricing and is not the appropriate route for Windows Server or SQL
Server.
The practical rule: for perpetual on-premises
licences (Windows Server, SQL Server), the donated route via TechSoup SA
is the lowest-cost option for qualifying organisations. Open Value
Nonprofit is the appropriate volume licensing alternative where TechSoup
access is unavailable or where Software Assurance is needed. For M365
subscriptions, CSP or Microsoft direct are the right paths.
What your NPO needs to
qualify
To access Microsoft’s donated programme through TechSoup SA, your
organisation must:
- Hold a valid registration number under South Africa’s Non-Profit
Organisations Act (Act 71 of 1997) - Operate exclusively for public benefit — welfare, education, health,
community development, or similar public benefit purposes (see SARS PBO
categories for the full list) - Not distribute profits, assets, or income to members or
directors
Public Benefit Organisation (PBO) tax status from SARS strengthens
your eligibility and may be required for certain Microsoft 365 grants,
but NPO Act registration alone is sufficient for most products.
Who does not qualify: government departments, trade
unions, political parties, and commercial entities without formal NPO
registration.
TechSoup SA verifies each organisation before granting catalogue
access. The process involves submitting your NPO certificate and a
description of your activities — typically 5–10 business days.
Registration must be renewed annually or your donated licence access
lapses.
What products are available
Windows Server 2022 Standard and SQL Server
2022 Standard are both available through TechSoup SA’s
Microsoft catalogue at the administrative handling fee. Check current
fees directly at techsoupsouthafrica.org — they are updated
periodically.
TechSoup SA also enforces annual quantity limits per organisation per
product — you cannot request unlimited licences in a single year. If you
are planning a large rollout, factor this into your procurement
timeline.
Windows Server is licensed per physical core
(minimum 16 cores per server). Standard edition covers up to 2 virtual
machines on the licensed host; if you run more VMs, additional licences
are required — verify your virtualisation topology against Microsoft’s
core-licence requirements before purchasing. Datacenter edition, which
covers unlimited VMs, falls outside the donated tier and is available
through Open Value Nonprofit or CSP at discounted nonprofit rates.
SQL Server is also licensed per core (minimum 4
cores). Standard edition is available through TechSoup SA. Enterprise
edition, which adds advanced high availability and unlimited
virtualisation rights, falls outside the donated tier and is available
through Open Value Nonprofit or CSP.
Microsoft 365 operates separately and is not
obtained through TechSoup. Microsoft 365 Business Basic is available
free for qualifying NPOs with up to 300 users — covering Exchange Online
email, OneDrive, Teams, and SharePoint. Applications are made directly
through microsoft.com/nonprofits, not via TechSoup SA. Paid tiers
(Business Standard and Premium) are available at significant nonprofit
discounts through CSP or Microsoft directly. Current pricing is listed
at microsoft.com/en-us/nonprofits/microsoft-365.
One important clarification: M365 does not replace SQL
Server. If your donor management, accounting, or case
management platform has a SQL Server dependency, that licensing
requirement exists regardless of your M365 subscription.
A
note on Software Assurance — and why it matters for NPOs
Donated licences are perpetual but do not include Software Assurance
(SA). SA is Microsoft’s maintenance programme covering upgrade rights to
future versions, Microsoft support entitlement, and training
resources.
In practice, this means a donated Windows Server 2022 licence stays
on Windows Server 2022 — it does not automatically entitle you to
Windows Server 2025. Microsoft does list newer versions in the TechSoup
catalogue when available, so your NPO can make a new donation request at
that point, subject to availability and annual limits.
The support lifecycle gives you time: Windows Server 2022 is in
extended support through October 2031 (mainstream support ends October
2026); SQL Server 2022 is in extended support through January 2033 (per
Microsoft’s product lifecycle page at
learn.microsoft.com/en-us/lifecycle/products/). For most SA NPOs running
standard workloads, extended support is sufficient — it covers security
patches and critical fixes.
However, if your NPO has no dedicated IT staff — which is common —
the SA question deserves honest consideration. Open Value Nonprofit
includes Software Assurance as an optional add-on, but it must be
purchased at the time of the original agreement — it cannot be added
mid-term. This is the primary scenario where OVN is preferable to the
donated route despite its higher cost: when your organisation genuinely
needs upgrade rights and Microsoft support entitlement built into the
agreement from day one.
We cover this trade-off in detail in a companion article, “Software
Assurance for SA NPOs: Do You Need It?” — worth reading before making a
procurement decision.
How TechCloud handles NPO
licensing
TechCloud manages end-to-end Microsoft licensing for South African
nonprofits: eligibility check, TechSoup registration, product selection,
deployment, and ongoing support.
The TechSoup application process is documentation-intensive and has a
verification wait — many organisations accept a higher reseller quote
simply because the registration process feels too complex to navigate
alone. We have completed enough of these that it is routine on our
end.
As a Microsoft CSP partner and authorised reseller, we quote all
three routes — TechSoup donated, Open Value Nonprofit, and CSP — so you
can make an informed decision with real numbers for your specific
product mix.
Get a licensing assessment: call 010 590
0090 or email info@techcloud.co.za. We
confirm your eligibility and compare all routes at no charge.
Last updated: May 2026. Programme terms and TechSoup handling
fees are subject to change — verify current fees at
techsoupsouthafrica.org before budgeting.
Frequently asked questions
Does our NPO need PBO status to qualify for donated Microsoft software?
NPO Act registration (Act 71 of 1997) is the minimum requirement for most donated products through TechSoup SA. PBO status from SARS strengthens your application and is required for certain Microsoft 365 grants, but is not mandatory for Windows Server or SQL Server donated licensing through TechSoup.
Can we get Windows Server Datacenter edition at donated pricing?
No. TechSoup SA’s donated programme covers Windows Server Standard edition only. Datacenter edition — required when running more than 2 virtual machines per server — falls outside the donated tier and is available through Open Value Nonprofit or CSP at discounted nonprofit rates.
A reseller quoted us R15,000 for server licensing — is that right?
It depends on the route. At CSP discounted nonprofit rates, a quote in that range may be reasonable depending on core count and edition. Via TechSoup SA’s donated programme, the cost is an administrative handling fee only — a fraction of commercial pricing. TechCloud will review any existing quote and compare all three routes at no charge: call 010 590 0090.
Does Microsoft 365 include Windows Server or SQL Server licences?
No. M365 and server licences are entirely separate programmes. M365 Business Basic covers email, file storage, Teams, and SharePoint — it does not include Windows Server or SQL Server. If your donor management, payroll, or case management platform has a SQL Server dependency, that licensing requirement exists regardless of your M365 subscription.
What happens if our NPO registration lapses?
TechSoup SA requires annual verification renewal. If your NPO registration or TechSoup verification lapses, your access to the donated catalogue is suspended until you renew. Perpetual licences legitimately issued before the lapse remain valid — Microsoft does not revoke them retrospectively — but you cannot request additional products until your organisation is re-verified.
Can Microsoft Teams replace our on-premises email server?
Yes, for email specifically. Exchange Online (included in M365 Business Basic) replaces on-premises Exchange Server for email, calendar, and contacts, eliminating Exchange Server licensing. If you run other line-of-business applications on the same server, those dependencies need separate assessment before decommissioning. See our Microsoft 365 NPO migration guide for the full path.