Microsoft Dynamics for Nonprofits: Features, Pricing and An Aussie Case

Microsoft Dynamics 365 for Nonprofits is a specialised suite of products designed to help charities manage donors, volunteers, programs, grants, and financial operations in one system. Built within the Microsoft Cloud for Nonprofit ecosystem, Dynamics 365 connects seamlessly with Microsoft 365, Azure, and Power Platform.

Many nonprofits still operate across fragmented systems that make reporting, fundraising, and service delivery difficult. According to ServiceNow’s 2024 research, 67% plan to expand their use of data management and cloud solutions within the next three years. At the same time, Microsoft now supports more than 325,000 nonprofits globally through its cloud ecosystem. This reflects sector-wide demand for integrated data tools that simplify impact reporting and operational management.

This guide explains how Dynamics 365 supports nonprofit teams, including core capabilities, pricing and eligibility through the Microsoft for Nonprofits program, implementation guidance, and an Australian case study demonstrating measurable improvements, referred to in the official Microsoft documentation.

What Is Microsoft Dynamics 365 for Nonprofits?

Microsoft Dynamics 365 for Nonprofits is a cloud-based CRM and ERP solution built for social-impact organisations to manage donors, volunteers, fundraising activities, finances, and program delivery across a unified Microsoft Cloud platform. As part of the Microsoft Cloud for Nonprofit, it centralises data, improves AI-supported decision-making, and enhances end-to-end visibility across services.

Dynamics 365 is commonly used by charities, community organisations, human service providers, youth services, mental health organisations, and NGOs. Core nonprofit scenarios supported include:

• Donor and constituent management
• Fundraising and grant lifecycle tracking
• Volunteer rostering and engagement
• Financial visibility across restricted and unrestricted funds
• Program delivery and outcome measurement

By standardising data and workflows across teams, Dynamics 365 helps nonprofits operate with greater clarity, accountability, and efficiency. Given that Dynamics 365 is central to the nonprofit ecosystem, it's essential to understand its specific role within the broader Microsoft Cloud for Nonprofit.

How Dynamics 365 Fits Into Microsoft Cloud for Nonprofit

Microsoft Cloud for Nonprofit brings together Dynamics 365, Microsoft 365, Azure, and Power Platform into a connected, secure ecosystem purpose-built for charitable organisations. Dynamics 365 sits at the centre of this ecosystem, linking donor engagement, fundraising activities, program operations, and financial data with the tools nonprofits use every day.

Today, over 300,000 nonprofits choose Microsoft technology, including Microsoft Cloud for Nonprofit (Microsoft), to manage fundraising, volunteer programs, operations, and service delivery, reflecting strong global adoption across organisations of all sizes.

Key Components of Microsoft Cloud for Nonprofit

• Dynamics 365: CRM and ERP applications, such as Dynamics Sales, Customer Insights, Customer Service, Business Central for donor engagement, fundraising, finance, case management, and program delivery
• Azure: Identity, authentication, hosting, security controls, and data services
• Microsoft 365: Collaboration and communication tools, including Teams, Outlook, and SharePoint
• Power Platform: Automation (Power Automate), low-code apps (Power Apps), and analytics (Power BI)

How Dynamics 365 integrates within this ecosystem

Microsoft Dynamics for Nonprofits operates on a unified data model and secure identity layer, enabling seamless information flow across operations.

Key integrations:

• Platform Connectivity: Connects with Azure for security, Microsoft 365 for communication, and Power Platform for automation and analytics.
• Seamless Data Flow: A donor update in Dynamics 365 can synchronise with finance, and volunteer hours logged in Power Apps can trigger a thank-you email via Outlook and appear in program dashboards.
• Accelerated Implementation: Microsoft provides the Nonprofit Accelerator, offering prebuilt data templates, workflows, and models that align with nonprofit processes for fast, best-practice adoption.

Why It Matters for Nonprofits

By operating within Microsoft Cloud for Nonprofit, Dynamics 365 becomes part of a coordinated environment for managing donors, volunteers, programs, and financial operations while maintaining enterprise-grade security and interoperability.

• Eliminates data silos
• Improves reporting accuracy and compliance
• Reduces manual processes
• Enables scalability for growing Australian nonprofits
• Strengthens security and privacy compliance

Microsoft provides a video overview explaining how these components connect within Microsoft Cloud for Nonprofit.

Now, let’s explore the specific tools and capabilities Dynamics 365 offers, which are essential for driving mission impact.

Key Features of Microsoft Dynamics for Nonprofits

Microsoft Dynamics 365 delivers the CRM, engagement, operations, and analytics capabilities NGOs need to manage donors, fundraising, volunteers, financial stewardship, and program delivery. It brings together integrated solutions such as Dynamics 365 Sales, Customer Insights, Business Central, Power Apps, and Power BI. The features below highlight the core pillars most relevant to mission-driven organisations.

Donor & Constituent Management

Donor and constituent management in Dynamics is a CRM capability that centralises donor, supporter, and household information into unified profiles and engagement timelines. It is built on Dynamics 365 Sales and extended by nonprofit tools that use Azure services for recurring gifts and revenue summaries.

Key capabilities include:

• Maintain unified donor, household, sponsor, and organisation profiles
• Track donation and revenue history, including recurring gifts (Azure-powered)
• Manage campaigns, appeals, and marketing lists from one place
• Segment supporters and score engagement for targeted outreach
• Personalise donor journeys using Dynamics 365 Customer Insights
• Integrate stewardship, service data, and fundraising activity into one record

These capabilities help organisations build stronger supporter relationships and maintain clarity across engagement activities.

Fundraising & Grant Management

Fundraising and grant management provide end-to-end tools for managing donations, pledges, campaigns, grants, and financial designations. Fundraising & Engagement (built on Dynamics 365 Sales) manages donor and revenue activities, while Fundraising Performance (Power BI) provides real-time insights through the Nonprofit Common Data Model. Grant Management, built on Power Apps, supports end-to-end grant workflows.

Key capabilities include:

• Consolidate constituent, relationship, gift, pledge, and designation records
• Manage the full grant lifecycle, from requests to awards and disbursements
• Coordinate events and enrich donor research using LinkedIn Sales Navigator
• Analyse fundraising performance with drill-down donation and campaign metrics
• Automate recurring gift and revenue processing using Azure services
• Connect fundraising, program delivery, and finance to unify data flows

This ecosystem reduces fragmented processes and strengthens financial accountability for donors and grantors.

Volunteer Management

Volunteer management in Microsoft’s nonprofit platform is a Power Apps–based solution that supports volunteer recruitment, onboarding, scheduling, and engagement. It consists of two integrated apps, Volunteer Management (for staff) and Volunteer Engagement (public-facing portal), built using the Nonprofit Common Data Model. These apps integrate with Dynamics 365 Sales and Customer Insights, so volunteer data aligns with constituent and program information.

Key capabilities include:

• Recruit and onboard volunteers using streamlined workflows
• Publish engagement opportunities to the Volunteer Engagement portal
• Review, approve, and schedule volunteers across programs
• Track onboarding progress, attendance, and shift fulfilment
• Automate messaging for schedules, logistics, and updates
• Monitor volunteer activity, participation, and hours contributed

Together, these tools give nonprofits a complete view of volunteer participation and streamline coordination across programs and events.

Financial Management & Fund Transparency

Financial management for charities is delivered through Dynamics 365 Business Central, which supports fund accounting, budgeting, and financial reporting. Business Central integrates with Dynamics 365 Sales, Fundraising & Engagement, and Grant Management to reconcile donations, pledges, and disbursements.

Key capabilities include:

• Manage restricted and unrestricted fund accounting for clear stewardship
• Build budgets and forecasts linked to programs, grants, and campaigns
• Track expenses and allocate costs by project or department
• Integrate payments and grant data for unified financial reporting
• Generate compliance-ready reports for auditors and boards
• Improve financial transparency for donors and organisational leaders

Business Central gives nonprofit teams a financial system that aligns operational spending with mission outcomes.

Program Delivery & Outcome Measurement

Program delivery and impact measurement, based on Microsoft Power Apps and Power BI, are template apps that help program teams gain valuable insights into project outcomes and overall impact. They integrate with Dynamics 365 fundraising and program data to help nonprofits analyse program effectiveness, report to stakeholders, and drive evidence-based improvements.

Key capabilities include:

• Track outputs, short-term outcomes, and long-term program impact
• Link activities to objectives using built-in logic model frameworks
• Visualise KPIs with program-level dashboards and metrics
• Report impact-per-dollar to donors, boards, and funders
• Monitor performance trends month-over-month and year-to-date

These tools help nonprofits demonstrate impact, support advocacy, and refine program delivery based on evidence.

Data Integration Through the Nonprofit Common Data Model (CDM)

The Nonprofit Common Data Model (CDM) is a sector-specific, open-source data framework that underpins the Microsoft Cloud for Nonprofit ecosystem. It standardises donor, volunteer, grant, financial, and program records across Dynamics 365, Business Central, and all nonprofit Power Apps templates, ensuring consistent information across every application.

Key capabilities include:

• Standardise nonprofit data using a purpose-built entity schema
• Unify donor, volunteer, grant, financial, and program data
• Eliminate information silos across all departments and systems
• Enable analytics, AI, and automation through structured data relationships
• Support collaboration with consistent, interoperable data definitions

CDM serves as the foundation that enables nonprofits to adopt scalable, integrated digital systems.

Together, these features form a connected nonprofit ecosystem where donor, volunteer, financial, and program data operate from one unified Microsoft platform. Now, let’s look at Microsoft’s nonprofit licensing offer, which makes enterprise-grade tools accessible even for organisations with limited budgets.

Dynamics 365 Nonprofit Pricing and Eligibility

Dynamics 365 pricing offers discounted licensing for eligible charities through the Microsoft Nonprofit Program, allowing them to access CRM, finance, and engagement tools at significantly reduced rates. These discounts help resource-constrained organisations modernise donor management, fundraising, volunteer coordination, and financial operations without commercial-level costs.

Discounted Pricing for Dynamics 365 and Power Apps

Microsoft offers several Dynamics 365 and Power Apps solutions with special pricing for nonprofit organisations, as detailed in the table that follows:

These nonprofit rates significantly reduce technology overhead, making it easier for charities to adopt modern CRM and ERP capabilities. To get the most up-to-date pricing details, refer to the official Microsoft nonprofit offer.

Eligibility Requirements (Microsoft Nonprofit Program)

To access Dynamics 365 nonprofit pricing, organisations must meet Microsoft’s Nonprofit Eligibility Guidelines, which include requirements for organisation type, mission, non-discrimination compliance, and documentation.

• Organisation Type: To be eligible for the program, organisations must be a legally recognised nonprofit or NGO, a public library offering free community services, or a public museum open for cultural or educational purposes.
• Mission Requirements: Eligible organisations must operate as non-profits. Their core mission must also demonstrably benefit the community in areas such as (but not limited to) poverty relief, education, health, human rights, the environment, or civil society.
• Non-Discrimination Requirements: Organisations must not discriminate in staffing, training, programs, or services based on: race, gender, religion, disability, age, sexual orientation, gender identity, national origin, marital status, political affiliation, veteran status, etc. (Full criteria: Microsoft Nonprofit Non-Discrimination Policy)

Documentation required:

• Proof of legal nonprofit registration
• Governance documentation
• Mission statement or public-facing website
• Verification Steps for Nonprofit Licensing

Microsoft uses a structured verification process, in partnership with TechSoup and regional validators, to confirm nonprofit status. The approval process follows four extractable steps:

• Step 1: Apply via the Microsoft Nonprofit Portal
• Step 2: Submit organisational documentation
• Step 3: Microsoft (via TechSoup or regional partners) verifies eligibility
• Step 4: Approved organisations gain access to discounted Dynamics 365 licences and grants

These nonprofit licensing benefits enable organisations to adopt Dynamics 365’s CRM, financial management, and program delivery tools at sustainable costs, making enterprise-grade technology accessible across the social-impact sector. To find out if your organisation is eligible, please review the official Microsoft Nonprofit Eligibility page.

Now that we understand the benefits and eligibility requirements, let’s look at how to implement these solutions within your organisation.

How to Implement Dynamics 365 for Nonprofits

Most organisations implement Microsoft Dynamics through experienced Microsoft nonprofit partners who understand sector-specific needs and can tailor the platform accordingly. This approach reduces project risk, improves user adoption, and ensures the technology truly supports mission delivery.

A typical Dynamics 365 implementation follows the structured methodology outlined below:

Step 1: Discovery & Requirement Gathering

Discovery is the phase where nonprofit teams and implementation partners document pain points, clarify operational goals, and define system requirements. The process includes workshops with fundraising, finance, program, and volunteer teams to ensure Dynamics 365 supports real organisational workflows.

Step 2: Solution Design & Process Mapping

Solution design maps nonprofit processes, such as donor stewardship, grant lifecycles, volunteer rostering, and program intake, to Dynamics 365 Sales, Customer Service, Power Platform, and Business Central. This step identifies required custom logic early to avoid unnecessary complexity and over-engineering.

Step 3: Data Migration & Cleansing

Data migration consolidates historical donor, volunteer, program, financial, and grant records from legacy systems. These datasets are deduplicated, validated, and restructured according to the Nonprofit Common Data Model (CDM) to ensure reliable reporting, segmentation, and analytics.

Step 4: Configuration & Power Apps Extensions

Dynamics is configured for fundraising, program delivery, or case management, while Power Apps and Power Automate streamline unique processes such as approvals, referrals, or reporting cycles.

Step 5: Training & Change Management

Training equips teams across fundraising, programs, finance, administration, and leadership with the skills they need to use Dynamics 365 effectively. Change management focuses on data quality practices, new workflow adoption, and user confidence, reducing resistance and improving long-term utilisation.

Step 6: Go-Live, Monitoring & Ongoing Support

After deployment, a partner provides issue resolution, optimisation, and enhancements as needs evolve, ensuring the system remains aligned with program and governance requirements.

Australian nonprofits need to ensure they comply with local privacy regulations regarding the data of their donors, beneficiaries, and volunteers. Explore the top 5 Microsoft Dynamics 365 Partners in Australia and how to select one in our article. To see the real-world impact, consider the Australian youth support service Yourtown, which successfully leveraged Dynamics 365 to transform its vital service delivery.

A Case Study in Australia: How Yourtown Improved Youth Support with Dynamics 365

Yourtown is a leading Australian nonprofit providing critical support services for children and young people, including Kids Helpline, Australia’s only free, 24/7 counselling service. Yourtown’s mission is to meet young people where they are and deliver timely, holistic support across phone, digital, and community channels.

Their Challenges

Despite its national impact, Yourtown struggled with outdated and fragmented systems that limited service quality and operational efficiency.

Key challenges included:

• Disconnected CRM, voice, and chat platforms
• Manual processes for counselling, documentation, and fundraising campaigns
• No unified view of the caller or donor history
• Frequent outages and phone limitations are affecting 24/7 service availability
• Inefficient marketing workflows and siloed donor engagement
• Large volumes of data with limited reporting insight

What Dynamics 365 Solved

Yourtown modernised its environment by moving to an integrated Microsoft platform combining Dynamics 365 Customer Service, Dynamics 365 Contact Centre, and Dynamics 365 Customer Insights – Journeys.

Dynamics 365 enabled:

• A unified, cloud-based system for all counselling interactions
• AI-generated case summaries to reduce manual documentation
• Consolidated donor and supporter data for personalised engagement
• Reliable omnichannel communication supporting 24/7 operations
• Scalable marketing automation and campaign management
• Deeper analytics to support advocacy and funding decisions

Measurable Improvements

After adopting Dynamics 365, Yourtown achieved:

• ~10 minutes saved per counselling call through AI summaries
• Reduced wait times and increased capacity to handle more calls from young people
• Improved reliability for critical late-night and crisis calls
• Real-time insights into service usage and outcomes
• Enhanced donor engagement with high-volume personalised messaging
• Stronger ability to advocate and secure funding using improved analytics

By transitioning to Dynamics 365, yourtown now operates with greater efficiency, clearer insight, and the capacity to serve more young people at the moments they need help most. Now that you’ve seen how Dynamics 365 benefits real-world nonprofits, let’s address some of the most frequently asked questions.

FAQs About Microsoft Dynamics for Nonprofits

Is Microsoft Dynamics good for nonprofits?

Yes. Dynamics 365 is well-suited for nonprofits because it centralises donor, volunteer, program, and financial data in one platform. It supports case management, fundraising, grant tracking, service delivery, and reporting, and integrates with Microsoft 365, Azure, and Power Platform.

What is included in Microsoft Cloud for Nonprofit?

Microsoft Cloud for Nonprofit unifies Dynamics 365, Azure, Microsoft 365, Power Platform, and specific nonprofit apps using the Nonprofit Common Data Model (CDM). It provides solutions for constituent management, fundraising, grants, volunteering, program delivery, outcome measurement, analytics, and security.

How much does Dynamics 365 cost for nonprofits?

Nonprofits receive significant, product-varying discounts through the Microsoft Nonprofit Program. Example monthly per-user costs are: Dynamics 365 Sales Professional at USD $16.30, Sales Enterprise at USD $23.80, and Business Central Essentials at USD $28.00, substantially lowering the cost of implementing modern CRM and ERP capabilities.

What is the Microsoft Dynamics Nonprofit Accelerator?

The Microsoft Nonprofit Accelerator is a framework built on the Nonprofit Common Data Model (CDM). It offers specialised schema, apps, and workflows to standardise nonprofit data (donors, grants, programs, etc.), enabling consistent reporting and easier customisation.

Microsoft Dynamics 365 gives nonprofits a unified, modern platform to manage donors, volunteers, programs, finances, and service delivery with far greater efficiency. Supported by Microsoft’s global nonprofit ecosystem, now reaching over 325,000 nonprofits and backed by more than $3.8 billion in donated and discounted technology, organisations gain a reliable foundation for data-driven decision-making.

If you’re exploring how Dynamics could support your mission, the Havi Technology team can help design and implement a solution tailored to your organisation’s needs.