Microsoft Deletes Non-Profit Data Due to Internal Error

Microsoft's decision to retire its Business Premium nonprofit grant caught some organizations off guard after an internal error deleted their data ahead of the scheduled retention deadline.

The grant, which was announced in May 2025, provided nonprofits with up to 300 free Microsoft 365 Business Basic licenses and discounted pricing on several paid plans. However, an error caused data associated with expired subscriptions to be deleted before the applicable retention period ended.

Microsoft confirmed that it cannot recover the deleted data and offered a setup service to help affected organizations establish a new Microsoft 365 environment. However, this service does not restore the lost data.

The incident highlights the importance of independent backups, as Microsoft's retention policy is separate from an organization's own backup procedures.