The short version
- Microsoft deleted some nonprofits’ Microsoft 365 data early after the Business Premium grant ended, and says it can’t get it back.
- Microsoft keeps Microsoft 365 running. Backing up your email and files is up to you.
- This week: check your licenses, set up a separate Microsoft 365 backup, and test a restore.
If your nonprofit used Microsoft’s free Business Premium grant, some of your email and files may be gone for good.
On September 28, The Register reported that Microsoft deleted data tied to expired Microsoft 365 Business Premium grant subscriptions before the normal waiting period ran out. Microsoft blames a system error. It also says it can’t get the data back, and it can’t tell nonprofits which data was deleted, or whether any was.
That last part is the hard one. Most organizations won’t know they lost something until someone goes looking for an old email or a grant file that isn’t there anymore.
Who was affected
In May 2025, Microsoft announced it would retire the Microsoft 365 Business Premium grant for nonprofits on July 1, 2025. In its place, eligible nonprofits could get up to 300 free Microsoft 365 Business Basic licenses, or pay a discounted price for Business Premium. We wrote about that change when it happened: Microsoft 365’s Changes to Nonprofit Licensing.
When a Microsoft 365 subscription ends, Microsoft’s own documentation says it normally goes through three stages:
- Expired for about 30 days. Everything still works.
- Disabled for about 90 days. Staff lose access, but an administrator can still get to the data and save it.
- Deleted. The data is gone, no later than 180 days after the subscription ends.
For some nonprofits, the data was deleted before those windows were up. If your organization was on the Business Premium grant and anyone’s email, OneDrive files or SharePoint sites were still tied to it when it expired, that data may be among what was lost.
Microsoft hasn’t said how many nonprofits were affected, how early the data was deleted, or what caused the error. Affected organizations are being offered a free “concierge” session with Microsoft staff to help set up a new environment. That helps going forward, but it doesn’t bring anything back.
Microsoft 365 keeps your files running. Keeping copies is your job.
Many people assume Microsoft backs up everything in Microsoft 365. Microsoft does keep its service running, and it keeps deleted items for a while in recycle bins and retention settings. Those are safety nets with expiration dates. Microsoft calls this a “shared responsibility” model, and its documentation tells customers more than once to back up their own data.
A real Microsoft 365 backup is a separate copy of your email, OneDrive files, SharePoint sites and Teams files, kept outside Microsoft. If something is deleted by mistake, by a former employee, by ransomware, or, as it turns out, by Microsoft, you can restore it from that copy.
For a nonprofit, the files at risk are often the ones that are hardest to rebuild: donor records, grant applications and reports, board minutes, and years of email with funders.
What to do this week
You don’t need to be technical for most of this. Whoever manages your Microsoft 365 account can do the first two steps in about 15 minutes.
- Check whether you had the grant. In the Microsoft 365 admin center, go to Billing, then Your products. Look for “Microsoft 365 Business Premium” with a grant or nonprofit label, and note whether it shows as expired or deleted.
- Look for unlicensed accounts. Under Users, check for staff accounts with no license. Those are the accounts whose email and OneDrive files were most likely tied to the old grant.
- Ask your team what’s missing. Have staff check for older email, shared folders and OneDrive files they expect to find. If something is gone, contact Microsoft nonprofit support in writing and ask about the concierge session. Keep a record of what you found and when.
- Set up a Microsoft 365 backup. Choose a service that copies Exchange email, OneDrive, SharePoint and Teams to storage outside Microsoft, and keeps copies long enough to cover a mistake you don’t notice for months.
- Test a restore. Pick one file and one mailbox and restore them. A backup nobody has tested is a guess.
- Back up before any license change. Before you switch plans, cancel a subscription or remove a license from a departing employee, make sure their data is saved somewhere else first.
Common questions
Does Microsoft back up Microsoft 365?
Microsoft keeps the service running and holds deleted items for a limited time. It doesn’t keep a long-term copy you can restore from, and it tells customers to back up their own data.
Can Microsoft recover the deleted nonprofit data?
No. Microsoft has said the data from the early deletions can’t be recovered.
Is SharePoint backed up automatically?
SharePoint has a recycle bin and version history, both with time limits. A SharePoint backup keeps a separate copy outside Microsoft, so you can restore files after those limits pass.
What happened to the Microsoft 365 Business Premium grant for nonprofits?
Microsoft retired it on July 1, 2025. Eligible nonprofits can get up to 300 free Business Basic licenses or buy Business Premium at a discount.
What does a Microsoft 365 backup cost?
Usually a few dollars per user per month. For our managed IT clients, it’s included in the flat monthly price.
IT support for nonprofits, in plain English
Plain English Technology Services works with nonprofits and small businesses across Whatcom, Skagit and Snohomish counties. Every client on our managed IT plan gets a Microsoft 365 backup of their email, OneDrive and SharePoint, stored separately from Microsoft. If Microsoft, a staff member or an attacker deletes something, we can bring it back.
Not sure where your organization stands? Get in touch or call (360) 545-4033. We’ll look at your Microsoft 365 licenses with you, tell you where your data lives, and tell you whether it’s backed up. No jargon, and no pressure to sign anything.