Microsoft has confirmed it permanently deleted data from nonprofits using the Microsoft 365 Business Premium Grant after the license was discontinued, leaving affected organizations without emails, documents, or backups unless they maintained their own copies.
- Microsoft 365 Business Premium Grant discontinued by April 2026
- Nonprofits' data was deleted and cannot be recovered
- Microsoft offers a setup service for new Microsoft 365 Business Basic licenses
What happened
Microsoft announced in 2025 that the Microsoft 365 Business Premium Grant licenses, which provided free access to eligible nonprofit organizations, would be discontinued by April 1, 2026. Nonprofits using this plan were instructed to switch to alternative Microsoft 365 licenses, such as Business Basic, before their existing licenses expired.
In the process of this transition, Microsoft inadvertently deleted data stored by an undisclosed number of nonprofit customers. This data loss includes emails and OneDrive documents vital to the daily operations of these organizations. Microsoft admits it cannot recover this lost data and has no detailed records identifying what was erased.
Why it matters
Nonprofits often operate with limited budgets and rely heavily on cost-free or discounted software services to carry out critical functions such as fundraising, communication, and record keeping. Losing essential emails and documents without warning can significantly disrupt their operations and jeopardize important relationships.
The absence of a recovery option means these nonprofits may face long-term setbacks. Organizations without their own backup systems have no means of restoring lost information, which could include contracts, donor information, and important correspondence necessary to fulfill their missions.
What to watch next
Microsoft is providing affected nonprofits with a complimentary concierge service to assist in setting up new Microsoft 365 Business Basic accounts. However, given the permanence of the data loss, many organizations might consider alternative productivity platforms such as Google Workspace or Zoho Workplace to mitigate future risks.
Moving forward, nonprofits must prioritize robust data backup strategies and carefully evaluate cloud service providers’ transition processes. Microsoft's handling of this incident may also prompt scrutiny over how tech providers support nonprofit users during license changes and subscription migrations.