Microsoft ends nondiscrimination requirement for nonprofit tech discounts after ADF-backed shareholders and Florida AG pressure; pregnancy centers now eligible.
Newsroom (20/11/2025 Gaudium Press ) Microsoft has formally committed to nondiscriminating against religious and conservative nonprofit organizations seeking discounted software and cloud services, following sustained pressure from faith-aligned shareholders and threats of legal action.
The agreement, signed October 10 between Microsoft and Boyer Research—a shareholder group represented by the Alliance Defending Freedom (ADF)—eliminates a prior requirement that applicant nonprofits affirm a broad nondiscrimination attestation. The company also agreed to lift a categorical exclusion previously applied to crisis pregnancy centers.
News of the settlement surfaced publicly on November 14, just weeks before Microsoft’s December 5 annual shareholder meeting, where Boyer Research had intended to introduce a resolution demanding a full report on the company’s nonprofit discounting practices.
In exchange for Microsoft’s concessions, the shareholders withdrew the proposal.
A Microsoft spokesperson told Catholic News Agency on November 19: “The broad and diverse array of nonprofits is one of America’s great strengths… We don’t think it’s desirable to pick and choose among these organizations based on ideological orientation.” The company acknowledged that a small number of eligible organizations had been wrongly denied discounts and stated the issue has been rectified.
ADF senior counsel Alexandra Gaiser, who represented the shareholders, described the current posture as “wait-and-see.” Since the agreement took effect, at least two pregnancy centers represented by ADF have successfully obtained the nonprofit pricing, though one application was initially rejected. “We are looking forward to seeing more nonprofits get the discount,” Gaiser said.
The Microsoft accord fits a broader pattern of corporate concessions secured by ADF this year. In separate federal lawsuits filed in 2025, the organization compelled both Asana and OpenAI to extend previously withheld discounts to Holy Sexuality, a Christian ministry producing educational content on biblical teachings about human sexuality. Settlement terms in both cases required the companies to remove ideological barriers to nonprofit eligibility.
External political pressure also played a role in the Microsoft case. On November 3, Florida Attorney General James Uthmeier publicly released a letter warning the company that continued exclusion of faith-based organizations could prompt legal action from his office.
Critics of corporate diversity, equity, and inclusion (DEI) programs have increasingly targeted nonprofit discount policies as a flashpoint, arguing that attestation requirements function as de facto ideological litmus tests. Supporters of the original policies counter that such safeguards prevent public subsidies—in the form of discounted services—from flowing to organizations that discriminate on the basis of sexual orientation, gender identity, or reproductive choice.
Microsoft’s revised policy applies only to its nonprofit tech-for-good program, which offers steep discounts on products including Microsoft 365, Azure, and Power BI to organizations recognized under section 501(c)(3) of the Internal Revenue Code.
Neither Microsoft nor ADF has disclosed whether the agreement includes mechanisms for ongoing monitoring or enforcement beyond standard application review processes. As of November 20, the company has not publicly updated its nonprofit eligibility webpage to reflect the policy change.
- Raju Hasmukh with files from CNA
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