SharePoint error - Your organization doesn't allow sharing with users from this domain. Please contact your IT department for help.

SharePoint Online and OneDrive for Business are great platforms for collaborating with coworkers, partners and vendors.
If you work with external people (vendor/partner from other organizations), you can share files, folders or even extend entire site and share with them.

Error while sharing with external guests

Your organization doesn't allow sharing with users from this domain. Please contact your IT department for help.

Steps to fix

Possibly, sharing of SharePoint and OneDrive content is restricted to limited domains.
Use below steps to allow sharing with this domain.

Tenant level settings

1. Navigate to SharePoint Admin Center --> Policies --> Sharing.
2. Under External Sharing, expand More external sharing settings.
   • If 'Limit external sharing by domain' is checked, ensure organization domain of he external user is added in limited domains.
   • If 'Limit external sharing by domain' is unchecked, external sharing is not restricted to specific domains, so lets move to SharePoint site settings
3. Allow/Block domains accordingly.

SharePoint Site Collection level settings

1. Navigate to SharePoint Admin Center --> Sites --> Active Sites.
2. Search your site and click the site name to bring up the properties.
3. Click Policies tab.
4. Click Edit under External sharing.
5. Ensure 'Only people in your organization' is not checked. This selection means sharing with external users is not allowed for this site.
6. Under Advanced settings for external sharing
   • If 'Limit external sharing by domain' is unchecked, the site can be shared with anyone. Contact Microsoft for support, something else is wrong
   • If 'Limit external sharing by domain' is checked, click Add Domains --> Allow only specific domains --> add new domain and save

Once content has been shared with external organization guest user, an invitation email will go out and the external user will have to accept it by clicking the link and follow steps to login via Microsoft (Outlook, Hotmail or any other personal account like Gmail, Yahoo, etc.) or Organizational (existing Office 365 account) account.

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