Copilot Studio vs Copilot for Microsoft 365: A Charity Guide

Artificial Intelligence is quickly advancing, transforming how organisations operate. More charities are recognising the potential of AI tools to enhance proficiency and streamline business operations as part of their digital transformation strategies. However, choosing the right tools is not always easy.

Microsoft offers two powerful AI tools, Copilot Studio and Copilot for Microsoft 365 for charities, that have been revolutionising the way we work. Charity managers often struggle to understand the differences between these two solutions, their distinct features, and how they fit into existing workflows. They are often unsure which solution best aligns with their needs or how they can leverage both for improved business processes.

This blog will explore the key features of Copilot Studio and Microsoft 365 Copilot for nonprofits, compare their capabilities, and provide practical insights on how charities can use them to enhance productivity and improve operational efficiency.

Copilot Studio vs. Copilot for Microsoft 365 FAQs

Many people working in not-for-profit organisations find it challenging to distinguish between Copilot Studio and Copilot for Microsoft 365. While both tools are powered by AI and designed to save you time and improve efficiency, they serve different purposes and offer exclusive benefits.

To help charity managers make educated decisions, we’ve compiled answers to some of the most frequently asked questions about these two AI solutions. Let’s break down their differences and how they can support your organisation.

What is Microsoft Copilot Studio? 

Microsoft Copilot Studio is an end-to-end conversational AI platform that allows organisations to build custom AI-powered agents. These agents can be designed using natural language or a graphical interface, making it straightforward for charities to create automated solutions that assist them with internal and external operations.  With Copilot Studio, charities can: 

• Build custom AI assistants that automate repetitive tasks, answer queries, and provide tailored support. 
• Create a standalone agent or publish to Microsoft 365 Copilot.
• Improve Microsoft 365 Copilot by integrating custom AI assistants tailored to their specific business needs. This can be done by deploying AI agents directly within Microsoft applications like Teams, SharePoint, and Microsoft 365 Copilot Chat, ensuring seamless interaction in daily workflows. 

What Are AI Agents, and Why Are They Useful?

AI agents are intelligent virtual assistants that can interact with users, automate processes, and provide real-time support. For charities, this means:

•  Automating donor and volunteer inquiries, decreasing response times.
•  Streamlining internal operations, such as HR and IT support requests
•  Enhancing accessibility, offering 24/7 assistance for beneficiaries and staff.

By leveraging Copilot Studio and its custom copilots, charities can build AI-driven solutions that improve efficiency and reduce workload, ensuring their teams can focus on more impactful work.

What is Microsoft 365 Copilot?

Microsoft 365 Copilot is an AI-powered assistant embedded directly within Microsoft 365 applications like Word, Excel, PowerPoint, Outlook, and Teams. It works alongside users to boost creativity, increase productivity, and streamline daily tasks by providing smart suggestions, generating content, summarising information, and automating workflows.

Some of the tangible benefits of Microsoft 365 Copilot for charities are:

• Help draft emails, reports, and funding proposals in Word and Outlook.
• Analyse and extract insights from data in Excel.
• Summarise meetings and suggest action points in Teams.
• Enhance collaboration by automating routine tasks across Microsoft apps.

Charities can access Microsoft 365 Copilot at a 15% discount through the Microsoft nonprofit grants program, making AI-powered productivity more affordable for the sector.

Is Copilot Part of Microsoft 365?

Yes, Copilot is fully integrated into Microsoft 365 applications, improving productivity across the tools charities use daily. It is embedded within Word, Excel, Teams, SharePoint, Power BI, and Dynamics 365, assisting staff to automate tasks, generate content, and analyse data more efficiently.

For charities, this means:

• Seamless AI assistance within familiar applications. No need for additional setups.
• Improved collaboration through AI-powered summaries and task automation.
• Data-driven insights with Copilot in Power BI and Dynamics 365 for better decision-making.

What’s the Difference Between Copilot Studio in Microsoft 365 and Copilot Studio Licensed Separately?

While Microsoft 365 Copilot is precisely embedded within Microsoft’s apps, Copilot Studio is a standalone AI development platform that allows organisations to build and customise AI-powered agents.

Here are the main differences:

• Copilot in Microsoft 365 improves apps like Word, Excel, and Teams with AI-generated content, automation, and insights.
• Copilot Studio is a widespread tool for building AI agents, which can be deployed across multiple channels-organisations.
• Microsoft 365 Copilot users can create and use AI agents within their licensed apps at no extra cost.
• Organisations licensing Copilot Studio separately only pay for usage, making it scalable for charities with varying needs.

For more details on Copilot Studio and licensing, visit Microsoft’s official site

How Do Microsoft Copilot and Copilot Studio Complement Each Other?

While Microsoft 365 Copilot and Copilot Studio serve separate purposes, they can work together to create a powerful AI-driven ecosystem for charities.

While Microsoft Copilot helps users streamline work by generating content, summarising information, automating tasks, and providing intelligent insights within Microsoft 365 apps like Word, Excel, PowerPoint, Outlook, and Teams, Copilot Studio can pull in data from external sources like CRM systems, ERP platforms, and proprietary databases.

Copilot Studio enables businesses to modify Copilot’s behaviour to align with internal processes and brand voice by building tailored AI assistants using low-code/no-code tools. It also extends Copilot’s capabilities beyond simple document creation by enabling custom AI-driven workflows, chatbots, and process automation.

For example, a charity using Microsoft Copilot for document generation in Word could leverage Copilot Studio to create a custom chatbot that retrieves customer insights from a CRM and generates personalised reports automatically.

Another example of a use case scenario is for grant applications. Copilot Studio could be used to automate entitlement screening, while Microsoft 365 Copilot drafts applications and funding proposals.

By combining both tools, charities can raise productivity, improve engagement, and measure their AI-driven initiatives.

Copilot Studio Key Features

Let’s take a closer look at the key features that make Copilot Studio such a brilliant tool for charities.

No-Code/Low-Code Bot Development

• Copilot Studio offers a drag-and-drop interface for developing conversational AI assistants, making it accessible to users with little to no coding experience.
• Pre-built templates for common use cases like donor support and volunteer onboarding.
• Visual flow designer to structure chatbot interactions intuitively.
• Easy-to-use interface that simplifies AI development for charities.

Natural Language Processing (NLP) & AI-Powered Responses

Using advanced NLP, Copilot Studio enables AI agents to understand and respond naturally to human input.

• AI-powered responses make interactions feel more human and instinctual.
• Can handle multiple languages, improving accessibility for global charities.
• Decreases staff workload by answering repetitive queries instantly.

Prebuilt Data Connectors

Copilot Studio provides access to 1,500+ prebuilt data connectors, granting charities the ability to integrate AI agents with key services and data sources. Data connectors are software components that enable data transfer between different applications, systems, or data sources. Copilot Studio:

• Connects to Microsoft tools like SharePoint, Power BI, and Dynamics 365.
• Works with third-party CRMs and databases (e.g., Salesforce, SQL).
• Helps AI assistants pull real-time data for accurate, automated responses.

Build AI Agents

Charities can create AI agents for:

• Donor engagement – Automate FAQs, event registrations, and impact updates.
• Volunteer coordination – Answer queries, manage schedules, and streamline onboarding.
• Beneficiary support – Provide 24/7 AI-driven assistance and guidance.

Integration with Microsoft 365 & External Apps

Copilot Studio seamlessly connects with:

• Microsoft Teams, Outlook, SharePoint, Power Apps for internal support.
• Third-party tools via Power Automate and APIs to extend functionality.
• Dataverse, SQL, Dynamics 365 to leverage existing data sources.

Fully Customisable and Scalable

AI agents in Copilot Studio are fully customisable, adapting to an organisation’s unique needs as it grows.

• Tailor branding and user interactions to match charity messaging.
• Scales with demand, adjusting AI capabilities based on workload.
• Secure and role-based access ensures compliance with nonprofit regulations.

Microsoft 365 Copilot Key Features

Microsoft 365 Copilot streamlines workflows with AI-powered assistance, seamless integration, and automation, helping charities increase productivity and focus on their mission.

AI-Powered Assistance

• Generates content for emails, reports, presentations, and grant proposals.
• Automates repetitive tasks in Word, Excel, Outlook, and Teams.
• Summarises complex data, helping charities make informed decisions.

Conversational AI and Generative AI

• Provides smart suggestions for messages and documents.
• Drafts responses in Outlook and Teams.
• Summarises meeting discussions and recommends action points.

Integration with Microsoft Services

• Works seamlessly within Word, Excel, PowerPoint, Outlook, and Teams.
• No setup required—automatically embedded in Microsoft 365 apps.
• Microsoft Copilot Enhances productivity without disrupting existing workflows.

Workflow Automation

• Automates document creation, meeting summaries, email drafting, and donor reports.
• Suggests next steps and action items to improve productivity.
• Reduces administrative burden, allowing charities to focus on their mission.

If you want to learn more about Copilt and how to maximise its potential, check our Copilt guide.

Copilot Studio and Copilot for Microsoft 365 Comparison

Both tools offer individual benefits, but together, they provide a comprehensive AI-powered solution for charities. The table below provides a visual comparison of both tools.

Overview Comparison

Final Thoughts on Copilot Studio and Copilot for Microsoft 365 

Understanding the differences between Copilot Studio and Microsoft 365 Copilot is essential for managers looking to leverage AI tools in their charity effectively. Ultimately, the choice between Microsoft Copilot and Copilot Studio depends on your specific needs. While Microsoft 365 Copilot increases productivity within apps like Word, Excel, and Teams, Copilot Studio empowers organisations to build custom AI-powered agents and automation solutions tailored to their needs.

By identifying the exclusive features of each tool and exploring how they can work together, charities can drastically enhance their business operations. Whether it’s automating donor engagement, streamlining volunteer coordination, or improving internal workflows, these AI tools provide powerful opportunities to boost efficiency and impact. Overall, Copilot Studio requires a bit more technical knowledge as it involves creating and configuring custom AI solutions.

With AI-driven solutions becoming more accessible, now is the perfect time for charities to embrace these technologies and become Copilot-ready.

Would your charity like to learn more about Microsoft Copilot and Copilot Studio and how to maximise their potential?  Get in touch with team at Qlic Here.