Microsoft nonprofit approved but custom domain ehso-af.org and licenses are not available in Microsoft Entra

Question

organization, [Moderator note: personal info removed], is an approved nonprofit in Microsoft nonprofit programs. However, when we try to create users in Microsoft Entra / Microsoft 365, only the default domain adminehso.onmicrosoft.com appears. Our custom domain ehso-af.org is not available for user creation or email addresses.

We also see a message that no licenses are available, so we cannot properly assign accounts to users. We want to use professional email addresses under @ehso-af.org for our nonprofit .

What we need help with is:

How to add and verify ehso-af.org so it appears as an available domain for user creation

How to confirm which Microsoft nonprofit licenses are active for our tenant

How to resolve the “no licenses available” message

Whether nonprofit approval alone should make licenses available automatically, or if additional activation steps are required

Our nonprofit organization has already been approved, but the custom domain and licensing are still not working as expected.

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Moved from: Microsoft 365 and Office | SharePoint Server | For business

Answer 1

Hello @Mohammad ewaz Nazari,

To add a custom domain to your Microsoft 365 tenant, please follow the steps below:

1. Sign in to the Microsoft 365 admin center.
2. Navigate to Settings, then select Domains.
3. Choose Add domain and follow the on-screen instructions to complete the setup.

For detailed, step-by-step guidance, you may refer to the following Microsoft Learn article: Add a custom domain to Microsoft 365 - Microsoft 365 admin | Microsoft Learn

Regarding licensing, once your nonprofit registration is approved, you can use the Nonprofit Hub to claim available offers and manage your organization’s profile and licenses. More information is available here: Registration and Validation - Microsoft for Nonprofits | Microsoft Learn

Please feel free to let me know if you have any further concern. I am looking forward to hearing from you.

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Answer 2

The custom domain and licenses are separate from nonprofit approval. Approval gives access to nonprofit offers, but domains must be added/verified and licenses must be acquired and assigned before they appear for user creation.

To address each point:

1. Add and verify ehso-af.org so it appears for user creation

ehso-af.org must be added and verified as a custom domain in the tenant before it can be used in userPrincipalName/email addresses:

• Microsoft Entra tenants are created with an initial domain like adminehso.onmicrosoft.com that cannot be changed or deleted.
• To use @ehso-af.org, the domain must be added as a custom domain and verified.

High‑level steps based on the domain guidance:

1. Register and control ehso-af.org with a domain registrar (already done for the organization).
2. In the Microsoft 365 or Microsoft Entra admin experience, add ehso-af.org as a custom domain.
3. Follow the wizard to create the required DNS records (TXT and possibly MX/CNAME) at the registrar.
4. Complete verification so the domain status becomes Verified.

Once verified:

• The domain will appear in the list of domains in Microsoft Entra ID and Microsoft 365.
• It can then be set as the primary domain for the organization so new users default to @ehso-af.org.

Relevant behavior:

• Tenants come with an initial *.onmicrosoft.com domain that cannot be changed, but custom domains can be added and set as primary for user-friendly addresses such as ******@ehso-af.org.
• Only verified custom domains can be used in userPrincipalName for new users.

2. Confirm which Microsoft nonprofit licenses are active

Nonprofit approval does not itself create licenses; it enables access to nonprofit‑priced or grant licenses that must then be claimed/activated. The context provided does not list the exact portal steps to view license SKUs, so only the following can be stated:

• After nonprofit registration and validation, the tenant can access the Nonprofit Hub to manage profile, claims, and resources.
• Licenses (grants or discounted subscriptions) must be claimed/activated against the validated tenant.

To confirm which licenses are active, use the standard Microsoft 365 admin licensing views for the tenant (not detailed in the context) and check which subscriptions are present and how many licenses are available.

3. Resolve the “no licenses available” message

The “no licenses available” message indicates that, even though the tenant is validated as nonprofit, there are currently no assignable licenses in the tenant. From the context:

• Registration and validation retain the existing Microsoft 365 environment, licensing, and users; they do not automatically change or add licenses.
• Nonprofit approval is a prerequisite to claim nonprofit offers, but entitlements must be managed per tenant and only one active tenant can be approved for nonprofit offers at a time.

Therefore, to resolve “no licenses available”:

• Ensure that nonprofit offers (grants or paid nonprofit subscriptions) have been claimed for this specific validated tenant.
• If licenses were expected but are not visible, or if there is confusion about which tenant holds the nonprofit entitlements, use the nonprofit support channel.

4. Whether nonprofit approval alone makes licenses available automatically

From the nonprofit registration and tenant‑modification guidance:

• Registration and validation create or register a tenant and mark it as eligible for nonprofit offers.
• They do not by themselves guarantee that licenses are provisioned or moved; entitlements are tenant‑specific, and only one active tenant can be approved for nonprofit offers at a time.
• Adjusting or transferring entitlements is a separate process and misuse of multiple tenants can cause delays or disqualification.

So:

• Nonprofit approval alone does not automatically ensure that licenses are present and assignable.
• Additional steps are required to claim nonprofit offers and, if necessary, to adjust or transfer entitlements within the validated tenant.

5. When to contact support

If:

• ehso-af.org has been correctly added and DNS configured but still does not verify or appear as a usable domain, or
• Nonprofit licenses expected for this tenant are missing, or entitlements appear to be associated with another tenant,

then the organization should submit a support request through the Microsoft nonprofit Contact Us form so Microsoft can review the specific tenant, domain, and entitlement configuration.

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References:

• Register a validated tenant
• Tenant modification
• Find and fix issues after adding your domain or DNS records
• Manage custom domain names in your Microsoft Entra ID
• Add your custom domain name to your tenant
• Troubleshoot user creation and deletion issues in Microsoft Entra ID