M365 Roundup, May 2025: Nonprofit Grants End, Copilot Learns Your Business

The May 2025 cycle splits cleanly into two piles: money news that needs a client conversation, and feature news that needs a calendar reminder. The money pile is heavier than usual. Nonprofit grants are ending, CSP partner requirements are climbing, and both land with hard dates.

Here is the full rundown, starting with the items that affect invoices.

The licensing news comes first#

Nonprofit Business Premium and E1 grants are ending. Microsoft announced on Wednesday, May 14, 2025 that the Microsoft 365 Business Premium grant and Office 365 E1 grant on CSP and Web Direct channels will be discontinued for nonprofit customers at their next renewal date on or after July 1, 2025.

To support nonprofits through the transition, Microsoft continues to offer:

• Up to 300 granted licenses of Microsoft 365 Business Basic
• Discounts up to 75 percent on many Microsoft 365 nonprofit offers, including Microsoft 365 Business Premium and Office 365 E1

The announcement is in the May 2025 Partner Center announcements (opens in new tab). If you serve nonprofits, every affected renewal between now and this time next year needs a budget conversation, and the security delta between Business Basic and Business Premium needs to be part of it.

CSP indirect reseller requirements tighten for FY26. Starting October 1, 2025, FY26 indirect resellers must:

• Hold a Solutions Partner designation for solution areas, or 25 partner capability points in each solution area
• Have $25,000 USD trailing-twelve-month revenue for all solution area incentives at PLA

Microsoft is also formally measuring change of channel partner (COCP) activity in FY26. Revenue, tenants, and subscriptions from CSP entities acquired, merged, or otherwise transitioned are explicitly monitored, effective from the announcement. Microsoft does not pay incentives for revenue, tenant, or subscription movements between CSP partners, since incentives are not intended for partner-to-partner transfers. That carve-out does not apply when Microsoft deauthorizes a CSP partner or when a partner goes out of business. Change of channel activity, as determined solely by Microsoft, can result in adjusted incentive payments, clawbacks of previously paid incentives, and termination of the applicable incentive.

Solution area eligibility for incentives is defined as:

• Modern Work incentives: Solutions Partner designation for Modern Work or Security
• Business Applications incentives: Solutions Partner designation for Business Applications
• Azure incentives: Solutions Partner designation for Data & AI (Azure), Digital & App Innovation (Azure), or Infrastructure (Azure)

Full details in the May 2025 Partner Center announcement (opens in new tab).

Copilot: Tuning headlines a busy month#

Copilot Tuning is the one to watch. With Copilot Tuning, organizations can use their own data, workflows, and processes to train models and create agents that perform domain-specific tasks with high accuracy in Copilot Studio, no coding required. Microsoft's example: a legal firm builds an agent that reflects its style and expertise, automating document creation and even drafting arguments that blend institutional knowledge with client-specific context. The full announcement from Build 2025 is on the Microsoft 365 blog (opens in new tab). Available starting June 2025 as part of the Copilot Tuning Early Adopter Program.

Copilot for phone calls, without the paper trail. Users get Copilot capabilities during live call sessions without a retained transcript or audio recording afterward, built for sensitive conversations where a persistent record is not wanted. Early June 2025 through late June 2025.

Teams Meeting Audio Overview. AI captures and summarizes key topics from Teams meetings as an audio output, converting selected meeting transcriptions into audio summaries so users can review highlights from multiple meetings quickly. Late June 2025 through mid-July 2025.

Audio overviews for files in OneDrive. Copilot will generate AI audio overviews for Word documents, PDF files, and Teams meeting recordings with transcripts stored in OneDrive. Mid-May 2025 through late May 2025.

Prompt Gallery gets a redesign and org-level prompts. The redesigned Copilot Prompt Gallery app introduces a home page and updated browsing, and adds the ability to create, publish, and manage organizational prompts tailored to your business. Late May 2025 (previously early May) through mid-June 2025 (previously mid-May).

PowerPoint template control for Copilot decks. Users can select templates from an organization-provided collection so Copilot-generated presentations stay on brand, or pick from a handpicked Microsoft collection. Mid-May 2025 (previously early May) through mid-June 2025 (previously late May).

Word fixes spelling and grammar in one click. A single action applies all grammar and spelling corrections at once, with review and undo for anything you would rather keep. Mid-May 2025 (previously late April) through mid-June 2025.

Outlook summarizes attachments. Users will be able to summarize PDF, Word (.docx), and PowerPoint (.pptx) email attachments with Copilot in Outlook. Mid-May 2025 through late July 2025.

OneDrive and SharePoint: one default worth reviewing#

The personal account sync prompt. OneDrive will prompt users who are signed into a personal Microsoft account on a Windows device and actively using corporate OneDrive to also sign into OneDrive with their personal account. Once signed in, both accounts work on the same device without merging content. The prompt is enabled by default and only appears when a personal account is already in use on the device.

Two controls matter here. Organizations that already restrict personal accounts with the DisablePersonalSync policy will not see the prompt. Everyone else can suppress it with the DisableNewAccountDetection policy. A community walkthrough on blocking personal OneDrive sync with Intune (opens in new tab) covers the steps. Rolling out mid-June 2025 through early July 2025. For tenants with data-handling requirements, decide your stance before the prompt does it for you.

Export files as PDF. Users get an Export as PDF command in the three-dot menu or command bar for files and shared libraries in OneDrive. Mid-May 2025 through mid-June 2025.

PDF compression. A new Compress feature reduces PDF file sizes in OneDrive on the web and SharePoint, with three compression levels to choose from. Late May 2025 (previously early May) through early June 2025 (previously mid-May).

Teams: lobby messages, town hall polls, and a room matchmaker#

Lobby chat. Meeting organizers and co-organizers can send one-way messages to attendees waiting in the meeting lobby. Late June 2025 through mid-July 2025.

Polls reach town halls (Teams Premium). Organizers with a Teams Premium license can create and share polls in town halls using the Polls app, collecting real-time feedback through multiple-choice and other poll types. There is a short demo video (opens in new tab) of the experience. Mid-July 2025 through late July 2025.

Room Recommender. If no room is booked, an AI-generated room suggestion appears in the meeting chat an hour before start time when two or more attendees are co-located in the same building. The suggestion weighs participant location, room availability, and capacity, and a single click reserves the room and updates the invite. The organizer needs a Teams Premium license, and the experience lands on Teams mobile for iOS. Mid-June 2025 through late June 2025.

Outlook and Edge: two small quality-of-life wins#

Type to jump in the message list. Users can type text to jump to the next matching message. Sort by sender, type "Philip," land on the first message from Philip. Late May 2025 (previously early May) through late June 2025.

Edge translates PDFs. Instead of copy-pasting text, a translate button in the address bar converts a PDF into more than 70 languages. GA in June 2025.