There’s a cost that comes with software and any half decent system with 1000+ users costing $200-300 USD a month is seriously well priced. Code based software you’d be lucky to get under $5k a month these days.
I get the impression that a change to what was previously very generous pricing, plus the fact this is for a not for profit means the issue is far more sensitive than it normally would be.
On the other hand if this was a paid product with 1000 users, having even 10% of the user base as paying customers at just $10 a month, revenue would be 4-5x monthly overheads.
If the product is good enough, I would speak with the client about monetising parts of it to cover the monthly overheads. Clearing $225USD a month would take very little effort if they are onboard with that.
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