[h2odragon]

I think this approach has advantages. Not least is it fits into what others have done, you won't have to spend time explaining how your licensing is different and so on.

Many companies offer discounted or free licenses to organizations as a form of support. Very vanilla, well understood.

The legal right to say "I cannot serve you as a customer because of moral / ethical conflicts" is being argued still in the USA but seems to still be fairly well understood.