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Microsoft Nonprofits Face Data Loss After Subscription Errors

Microsoft Nonprofits Face Data Loss After Subscription Errors

First seen 29 Sep 2026, 07:17 UTC • •

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ThreatCluster AI
ThreatCluster •September 29, 2026 at 08:10 UTC
  • •Nonprofits lost access to deleted M365 data due to a Microsoft error.
  • •The issue occurred during the transition from the Business Premium grant.
  • •Microsoft is offering support to affected organizations to rebuild their environments.

Microsoft has informed nonprofit organizations that their deleted M365 data cannot be recovered due to an error during the transition from the Microsoft 365 Business Premium grant. This grant, which provided ten free licenses, was retired in July 2025, leading to the deactivation of subscriptions. Following this, Microsoft mistakenly deleted data before the retention period had ended, leaving affected organizations without access to potentially critical information. The company has not disclosed how many nonprofits were impacted or the specifics of the data lost. Microsoft is offering a concierge service to assist affected organizations in setting up new Microsoft 365 environments. The issue arose from a failure in the data retention process after the subscriptions were terminated. Microsoft has confirmed the error and expressed regret but has not provided details on the cause or the extent of the data loss.

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Timeline

2025-07-01
Business Premium grant retired
Microsoft announced the retirement of the Microsoft 365 Business Premium grant, ending free licenses for nonprofits.
Theregister
2026-09-28
Data deletion confirmed
Microsoft admitted to deleting nonprofit M365 data prematurely due to an error, stating recovery options had failed.
Theregister

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