Microsoft Fundraising and Engagement Is Retiring: Your Complete Migration Guide for 2026

Last updated: February 2026 | Reading time: ~15 minutes

If you are among the thousands of nonprofits that rely on Microsoft Fundraising and Engagement for donor management, gift processing, and campaign tracking, this guide is for you. We break down exactly what is happening, what your options are, how to evaluate alternatives, and how to execute a smooth migration before the deadline.

The window to act is narrowing. Organizations that start migration planning in Q1–Q2 2026 give themselves enough time to evaluate, implement, migrate data, and train staff without rushing. Those that wait until Q3 or Q4 risk a scrambled transition during year-end fundraising season — the worst possible timing for a systems change.

What Is Happening with Microsoft Fundraising and Engagement?

On July 15, 2024, Microsoft officially announced that its Fundraising and Engagement solution — the purpose-built nonprofit CRM module within Microsoft Cloud for Nonprofit — will be permanently retired on December 31, 2026.

Here is what that means in practical terms:

• No new features or enhancements since July 2024 — the platform is frozen
• Security patches only will continue through December 2026
• All technical support ends after 11:59 PM PT on December 31, 2026
• No migration extension has been announced or is expected
• Dataverse and Dynamics 365 continue — only the F&E layer is being removed

This is not a soft deprecation. Microsoft is fully sunsetting the product, meaning any organization still running F&E on January 1, 2027 will be operating an unsupported system with no security updates, no bug fixes, and no recourse for issues.

Why Is Microsoft Retiring F&E?

Microsoft has not provided a single public reason, but the context is clear. Fundraising and Engagement was part of Microsoft Cloud for Nonprofit, an industry cloud initiative that Microsoft has strategically refocused. Rather than maintaining a first-party nonprofit CRM, Microsoft is leaning into its partner ecosystem — encouraging ISVs (independent software vendors) to build purpose-built nonprofit solutions on top of Dynamics 365 and Dataverse.

This is actually positive news for nonprofits who felt constrained by F&E’s limited feature set. Purpose-built partner solutions like StratusLIVE 365 offer dramatically deeper functionality because they are built by teams who work exclusively with nonprofits, rather than as a side project within a massive enterprise software company.

Critical Timeline: Key Dates You Cannot Miss

Your Migration Options: What Are the Realistic Paths Forward?

Microsoft has identified several paths for F&E customers. However, not all paths are equal. Let us examine each option honestly.

Option 1: Migrate to a Dynamics 365-Native Nonprofit CRM (Recommended)

This is the most natural migration path. Your organization already runs on Dynamics 365 and Dataverse. Your staff already knows the Microsoft ecosystem. Your data already lives in Dataverse. A Dynamics 365-native nonprofit CRM lets you keep everything that works and upgrade only the nonprofit layer.

Why this works best:

• Zero platform re-training — your team stays in the Microsoft environment they know
• Data stays in Dataverse — no risky cross-platform data migration
• Existing integrations survive — Outlook, Teams, SharePoint, Power BI all continue working
• Licensing investments preserved — your Microsoft 365 and Dynamics 365 licenses still apply
• Familiar admin tools — Power Platform, Azure AD, and security roles remain the same

StratusLIVE 365 is the leading purpose-built nonprofit CRM on Microsoft Dynamics 365. It was designed from the ground up for nonprofits and runs natively on the same Dataverse platform as F&E, making it the most seamless migration path available.

Option 2: Move to a Completely Different CRM Platform

Some organizations will evaluate non-Microsoft CRM platforms like Salesforce Nonprofit Cloud, Bloomerang, Virtuous, or Blackbaud Raiser’s Edge NXT. This is a viable but significantly more complex path.

What this requires:

• Full data migration from Dataverse to an entirely different database architecture
• Re-integration of every connected system — accounting, email, website, events
• Complete staff re-training on a new platform, new interface, new workflows
• Loss of Microsoft ecosystem benefits — no native Outlook, Teams, or Power BI integration
• New licensing costs on top of or instead of your existing Microsoft investment

For organizations deeply embedded in the Microsoft ecosystem, this path doubles migration complexity and cost. It may make sense for organizations already considering a broader technology shift, but for most F&E customers, it is the harder and more expensive route.

Option 3: Build a Custom Solution on Raw Dynamics 365 Sales

Microsoft suggests customers can work with a partner to configure Dynamics 365 Sales for nonprofit use. While technically possible, this approach carries significant risk.

Challenges:

• No nonprofit-specific data model — you must build donation tracking, gift processing, campaign management, and constituent management from scratch
• Ongoing custom maintenance — every Dynamics 365 update may require re-testing your custom modules
• No nonprofit community or roadmap — you are alone with your custom build
• Higher long-term cost — custom development and maintenance typically exceeds packaged software

We recommend this option only for organizations with highly unique requirements that no packaged nonprofit CRM can address.

Why StratusLIVE 365 Is the Natural Upgrade Path from F&E

StratusLIVE 365 was purpose-built for nonprofits on the exact same platform as F&E: Microsoft Dynamics 365 and Dataverse. This is not a coincidence — it is by design. Here is why it matters:

The bottom line: StratusLIVE 365 does everything F&E did, plus dramatically more, while keeping you on the same Microsoft platform your organization already uses and trusts.

Step-by-Step: How to Migrate from F&E to StratusLIVE 365

A well-planned migration typically takes 3–6 months depending on your organization’s size and complexity. Here is the proven process:

Phase 1: Discovery and Assessment (Weeks 1–3)

• Audit your current F&E environment — document custom fields, workflows, integrations, reports, and data volumes
• Identify data quality issues — duplicate records, incomplete fields, orphaned records
• Map your requirements — what does your team actually use vs. what was configured but never adopted?
• Engage stakeholders — fundraisers, data entry staff, finance, IT, and leadership all have migration input

Phase 2: Solution Design (Weeks 3–6)

• Configure StratusLIVE 365 to match your operational workflows
• Map F&E data fields to StratusLIVE 365 entities — constituent records, donations, campaigns, interactions
• Design integration architecture — accounting system (e.g., Great Plains, Sage), website, email marketing
• Plan report migration — identify which F&E reports to recreate and which to improve with Power BI

Phase 3: Data Migration (Weeks 6–10)

• Extract and cleanse data from Dataverse (your data stays in Dataverse, so this is a schema migration, not a platform migration)
• Run test migrations with a subset of records to validate mapping accuracy
• Validate donor histories — ensure giving history, interactions, and campaign associations transfer correctly
• Perform full migration with verification checkpoints

Phase 4: Testing and Training (Weeks 10–14)

• User acceptance testing (UAT) with key staff from each department
• Side-by-side validation — run both systems briefly to confirm data integrity
• Role-based training — fundraisers, data entry, finance, and administrators each need tailored sessions
• Create reference guides and quick-start documentation for your specific configuration

Phase 5: Go-Live and Optimization (Weeks 14–16+)

• Cutover to StratusLIVE 365 as your primary system
• Decommission F&E components (Dataverse and Dynamics 365 remain)
• Monitor adoption — track login rates, feature usage, and support ticket themes
• Optimize and iterate — use the first 30–60 days to refine workflows based on real usage

How to Evaluate Any F&E Replacement: Your Checklist

Regardless of which solution you consider, use these criteria to evaluate any potential F&E replacement:

Addressing Common Concerns About Migration

“We don’t have the budget for a migration right now.”

Consider the cost of not migrating. After December 31, 2026, you will be running an unsupported system. Any security vulnerability, data issue, or system failure will be entirely on your team to resolve — with no help from Microsoft. The cost of an emergency migration in Q4 2026 or a data breach in 2027 far exceeds the cost of a planned migration today.

“Our team is already overwhelmed.”

This is exactly why starting early matters. A migration that begins in Q1 2026 can be paced over 4–6 months with manageable weekly time commitments. A migration crammed into Q3–Q4 2026 will overwhelm your team. The earlier you start, the lighter the weekly lift.

“What if we just keep running F&E after it’s retired?”

Technically, the software does not stop working on January 1, 2027. However, you will receive no security updates, no bug fixes, and no support. You will also fall behind on Dynamics 365 platform updates, creating increasing technical debt. Most critically, you will have no compliance guarantee for donor data security — a serious liability for any organization handling PII and financial data.

“Our data is too messy to migrate.”

This is actually the best reason to migrate now rather than later. A well-managed migration includes a data cleansing phase that resolves duplicates, fills gaps, and standardizes records. You will emerge from migration with cleaner, more useful data than you have today. Delaying only makes the problem worse.

Frequently Asked Questions

Can we continue using Dataverse and Dynamics 365 after F&E retires?

Yes. Microsoft is only retiring the Fundraising and Engagement application layer. Dataverse, Dynamics 365, and your Microsoft 365 licenses all continue. A Dynamics 365-native nonprofit CRM like StratusLIVE 365 installs on top of the same platform.

Will our existing data be lost?

No. Your data lives in Dataverse, which continues to operate. A migration to StratusLIVE 365 maps your existing data to the new application’s schema within Dataverse. Nothing is exported out of your environment.

How long does a typical migration take?

For a mid-size nonprofit (10–50 users, 50K–500K constituent records), plan for 3–6 months from kickoff to go-live. Larger organizations or those with complex integrations may need 6–9 months.

Does StratusLIVE offer migration support?

Yes. StratusLIVE provides dedicated migration specialists, data mapping tools, and a proven migration methodology specifically designed for F&E customers. Contact StratusLIVE for a free migration assessment.

What about our custom reports?

F&E reports built with SSRS or Power BI can be recreated and often improved. StratusLIVE 365 includes built-in dashboards and full Power BI integration for advanced analytics.

Take the Next Step: Free F&E Migration Assessment

Every day you wait is a day closer to the deadline. StratusLIVE’s team of nonprofit technology experts can assess your current F&E environment, map your requirements, and deliver a personalized migration roadmap — at no cost.

What you will receive:

• A detailed assessment of your current F&E environment and data
• A customized migration roadmap with timeline and milestones
• A total cost of ownership comparison: F&E (remaining) vs. StratusLIVE 365
• A risk analysis of delaying migration vs. starting now

This guide was published by StratusLIVE in February 2026. For the latest information on Microsoft F&E retirement and migration support, visit stratuslive.com.