Microsoft Deletes 171,000 Nonprofits' OneDrive Data After Free License Retirements
Updated
Updated · Slate · Aug 18
Microsoft Deletes 171,000 Nonprofits' OneDrive Data After Free License Retirements
1 articles · Updated · Slate · Aug 18
Summary
Roughly 171,000 small nonprofits lost all data in their Microsoft OneDrive accounts after the company retired free Microsoft 365 Business Premium grants, according to a support representative cited by affected users.
June 11 became the breaking point for some groups: Canopy said Microsoft had confirmed access through Oct. 4, 2026, yet its files were deleted without further warning and later deemed unrecoverable.
Microsoft said it began notifying customers in spring 2025 and urged them to switch before renewal dates, but multiple nonprofits said they received no clear notice or only confusing messages sent to little-used admin inboxes.
About 400,000 small organizations had used the program, and nonprofit consultant George Weiner said the free software covered roughly 30% of IT spending for many groups with budgets under $1 million.
The fallout is leaving cash-strapped nonprofits to rebuild lost records, replace apps and migrate providers, with some reporting hundreds of hours of recovery work and no easy short-term alternative.