I think it's a great thing. People already use Azure or some other provider at these institutes (I know my uni does). If Microsoft wants to trade free services for market share, everyone partaking benefits from it -- unlike cigarrets at schools. If you or your institution don't want to partake, don't. I know I won't.
But there is no reason the support has to be "free" access to cloud resources at all. Why not just donate the money and let the nonprofits choose which cloud to use (or whether to use a cloud at all)?
Because if you give 1 billion dollars away, you are 1 billion less wealthy. If you give away 1 billion dollars worth of Azure credits, you are some much smaller percentage of 1 billion less wealthy, and the recipient is still receiving 1 billion in value.
Only because you declare that something has the value of 1 billion doesn't make it so.
First, you're not giving away physical goods, but eligibility for a service - but what exactly this service entails and how useful it is can still change in the future.
Second, it's a service that requires a substantial level of commitment from your clients - a commitment that causes risks for the clients in its own (lock-in) as discussed in many other places in this thread.
I think it's a great thing. People already use Azure or some other provider at these institutes (I know my uni does). If Microsoft wants to trade free services for market share, everyone partaking benefits from it -- unlike cigarrets at schools. If you or your institution don't want to partake, don't. I know I won't.