distribution group can’t receive email from outside the organization

Issue:  Distribution group not getting outside emails.  Senders receive bounce messages:

Your message can’t be delivered because delivery to this address is restricted.
Generating server: BY2PR02MB106.namprd02.prod.outlook.com
Remote Server returned ‘550 5.7.1 RESOLVER.RST.AuthRequired; authentication required’

Solution: By default, distribution groups in Office 365 (and Exchange) will only receive email from internal senders.

In order to allow the distribution group to receive mail from outside the organization:

1) open Exchange Admin Center,
2) click recipients > groups
3) select (or create) the distribution group
4) click the edit button edit icon

distribution-groups-list

5) click delivery management > select “Senders inside and outside of my organization”

delivery-management

6) click Save save button

This distribution group will now accept mail from outside senders.
The following steps will show you how to set all distribution groups or a subset of distribution groups to accept mail from senders outside the organization.

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