Read the small print: 5 co-op funding details Microsoft partners miss

Introduction

The rules of Microsoft co-op funding are clearly laid out. But as with most structured incentive programs, it’s the small print that causes the most problems. 

A missed threshold, an outdated activity, or a late submission might seem minor—but these are the kinds of details that quietly block access to your funds. In this blog, we highlight five lesser-known co-op funding details every partner should know.

Microsoft sets minimum thresholds that determine whether your earned funds qualify as co-op—or get converted into a rebate. These thresholds vary depending on your partner type. 

• For some programs (e.g. Surface or Hosting), the threshold is $1,500 
• For others (e.g. CSP Indirect Resellers or Direct Bill Partners), it’s $10,000 

If you fall short of the required amount during the earning period, the funds are automatically paid out as a rebate. That might sound fine—but you lose the flexibility that comes with co-op funding, particularly the ability to reinvest directly into strategic marketing initiatives. 

What to do: Track your accruals regularly and adjust your activity if you’re at risk of missing the threshold.

Microsoft organises co-op funding into three categories: 

• Demand Generation: e.g., digital campaigns, paid media, webinars 
• Market Development: e.g., customer-specific campaigns, proof-of-concepts 
• Partner Skilling: e.g., certifications, technical training 

Each category comes with its own requirements. Some activities require pre-approval, others don’t. And if your planned activity doesn’t clearly fit, your claim could be denied—even if the work was done well. 

What to do: Don’t guess. Before committing funds, confirm which category your activity falls into and whether it requires pre-approval or extra documentation. 

Each year, Microsoft updates what qualifies as an approved co-op activity. That means an activity that was eligible last year may no longer qualify. In FY25, Microsoft refined its list of approved co-op activities. For example: 

• TV and radio advertising is no longer eligible. 
• Print advertising is now restricted to Surface partners only. 

If you’ve been planning based on old guidelines, it could result in denied claims—even if the campaign itself was solid. 

What to do: Check Microsoft’s most current co-op guide before you finalise any campaign plan.

Even if your activity is eligible and your budget is in order, missing the Proof of Execution (PoE) deadline will void your claim. If the PoE is late—or missing—your claim won’t be reimbursed. These are hard deadlines: 

• H1 PoE must be submitted by September 30 
• H2 PoE must be submitted by March 31 

Late submissions won’t be considered, no matter the reason. 

What to do: Submit your PoE as soon as the activity is completed. Don’t wait for the deadline, and make sure your documentation is thorough and audit-ready.

Some expenses might feel like logical marketing investments, but they’re excluded from co-op reimbursement. A few examples include: 

• Specialisation audit fees 
• Sponsorship fees for Microsoft-hosted events 

While these might support growth or visibility, they won’t be reimbursed through your co-op funding. 

What to do: Run every activity or cost through Microsoft’s approved list before assigning co-op budget to it.

Bonus tip:  

This one is easily overlooked, especially by new partners: if your bank and tax profiles aren’t completed and approved in Partner Center, Microsoft won’t release your funds—even if everything else was done correctly. 

Make sure your profile setup is complete and compliant before attempting to submit any claims. 

Conclusion 

Microsoft’s co-op funding program has clear rules—but it’s the smaller details that often make the biggest difference. A missed threshold, an outdated activity, or a late submission can quietly cancel out the value of everything you’ve earned. 

Knowing how the system works isn’t enough. The co-op funding cycle isn’t forgiving. You need to stay sharp on the specifics. And this checklist is only a starting point. 

If you’re unsure whether you’re fully aligned with Microsoft’s co-op funding requirements, Blacfox can help. We work closely with partners to help them plan, execute, and claim with confidence.

Click here to schedule a quick chat.