Microsoft says it will not discriminate against religious groups after investor criticism

null / Credit: OlegRi/Shutterstock

CNA Staff, Nov 20, 2025 / 07:00 am (CNA).

After pushback from investors, Microsoft has signed a statement agreeing not to discriminate against religious or conservative nonprofit groups seeking a discount the tech giant offers to other nonprofits.

On Oct. 10, Microsoft and Boyer Research, a group of shareholders represented by Alliance Defending Freedom (ADF), a Christian legal group, signed the agreement. News of the agreement was published on Nov. 14.

The shareholders had planned to put forth a proposal asking Microsoft on Dec. 5 at its annual meeting for a report on the company’s discounting practices, according to Bloomberg News.   

The shareholders agreed not to move forward with the proposal after Microsoft signed the agreement, which stated that nonprofits no longer needed to affirm a nondiscrimination attestation. The company also said a categorical ban on pregnancy centers would be removed.

In a statement to CNA on Nov. 19, Microsoft said: “The broad and diverse array of nonprofits is one of America’s great strengths, and the purpose of this nonprofit program is to provide discounts to a broad group of organizations that qualify as nonprofits under the federal tax code. We don’t think it’s desirable to pick and choose among these organizations based on ideological orientation. In this instance, we found that a small number of organizations that should have been eligible for these discounts were not receiving them. We’ve fixed this and those organizations are now eligible.”

ADF attorney Alexandra Gaiser, who represented the shareholders, told CNA that the legal group and some pregnancy centers they represent are now in “wait-and-see mode.”

She said since the agreement was signed, one pregnancy center has applied for the discount and been denied, but “a couple have received the nonprofit discount.”

“We are looking forward to seeing more nonprofits get the discount,” Gaiser said.

Microsoft is not the only corporation alleged to have discriminatory practices against faith-based or conservative groups that ADF has contended with.

ADF filed two federal lawsuits this year, one against California-based software company Asana and the other against OpenAI, makers of ChatGPT, who both agreed in settlements to give previously withheld nonprofit discounts to Holy Sexuality, a Christian nonprofit group that makes videos and courses that teach about biblical principles on human sexuality.

In the settlements, both tech companies said they would remove barriers to the discounts for religious organizations, according to ADF.

Florida Attorney General James Uthmeier shared a letter he sent to Microsoft on social media on Nov. 3 in which he said the state might take legal action against the company if discriminatory practices against religious groups continued.