Microsoft has denied allegations that it discriminated against conservative religious nonprofits in its software discount program, following months of pressure from groups such as Alliance Defending Freedom (ADF).
The company clarified that nonprofits are not required to attest to nondiscrimination policies in order to qualify for discounts.
ADF had accused Microsoft of withholding discounted software from the organisation itself and from certain other groups. These included nonprofits that do not hire LGBTQ employees for religious reasons and pregnancy resource centers that do not offer abortions. Investors linked to ADF planned to raise the issue at Microsoft’s annual shareholder meeting on Dec. 5, seeking a report on the company’s discounting practices.
The proposal was withdrawn after Microsoft stated that such nonprofits either already qualify or will continue to qualify for discounts.
Microsoft stated that its discount programme is intended for a wide range of nonprofit organisations and that it does not consider it appropriate to selectively include or exclude groups based on ideological views. The company explained that it had identified a small number of organisations that should have qualified for the discounts but were not receiving them, and said the issue has since been corrected, making those organisations eligible once again.
ADF has recently announced settlements in similar lawsuits filed against OpenAI and Asana Inc. on behalf of Holy Sexuality, a Christian nonprofit in California. ADF said both companies agreed to remove barriers preventing religious nonprofits from accessing discounts. OpenAI declined to comment, while Asana did not respond.
Pressure has also come from state officials.
On Nov. 3, Florida Attorney General James Uthmeier sent a letter to Microsoft, which he later posted on social media, warning that excluding faith-based groups and pregnancy centers that do not provide abortions could prompt legal action. Microsoft’s agreement with ADF stated clearly that no categorical exclusion prevents pregnancy centers from receiving discounts.
The issue unfolds as many companies revise their approaches to diversity, equity and inclusion in response to President Donald Trump’s return to office and his efforts to eliminate what he calls “illegal DEI.” LGBTQ initiatives have become especially contentious. Several large employers have reduced support for pride events, removed pronoun references, stepped back from LGBTQ-friendly rankings and adjusted policies due to regulatory concerns.
But advocates warn that the shift exposes how precarious LGBTQ progress remains.
For now, conservative groups appear to have momentum. Jerry Bowyer, adviser to Houston-based Patron Partners — the firm behind the Microsoft shareholder proposal — said companies under scrutiny need not acknowledge past actions as long as they commit to avoiding belief-based exclusions going forward.