Microsoft Wipes Nonprofit M365 Data in Internal Error

Microsoft's internal error wiped M365 data from affected nonprofits before the scheduled retention deadline, leaving them with no recovery path.

The issue occurred when Microsoft deleted data from expired nonprofit subscriptions ahead of the applicable retention period. According to The Register, Microsoft confirmed that it was unable to recover the deleted data and could not provide a list showing which data may have been affected or whether any data was deleted at all in a given case.

The Business Premium grant for nonprofits was announced to be retired in May 2025 with a structured offboarding window. However, an internal error shortened this window without notice, resulting in the deletion of data before it could be preserved.

Microsoft apologized and offered affected nonprofits a free concierge session with a specialist to help establish a new Microsoft 365 environment and answer questions. However, this service does not recover deleted data but rather helps configure replacement accounts.