News: 1758258958

  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

Slack threatened to delete nonprofit coding club’s data if it didn’t pay $50k in a week

(2025/09/19)


Slack sent a nonprofit hacking club for teens a demand for $50,000, payable within a week, and threatened to delete the club’s message archive if it did not pay.

That horror scenario came to light in a Thursday [1]post by Mahad Kalam, who helps out at [2]Hack Club , a nonprofit that works to run coding clubs at high schools.

Slack is an integral part of the org’s offline community.

[3]

“Coding doesn’t have to be a solitary activity,” states a blurb on its home page. “At Hack Club, we make remarkable things together, and in our Slack you’ll find awesome people to hang out with too. Code together, find your programming community, dream up something wild, or just #lounge.”

[4]

[5]

According to Kalam’s post, “A few years ago, when Slack transitioned us from their free nonprofit plan to a $5,000/year arrangement, we happily paid. It was reasonable, and we valued the service they provided to our community.”

On Tuesday, Slack stopped being reasonable.

[6]

“However, two days ago, Slack reached out to us and said that if we don’t agree to pay an extra $50k this week and $200k a year, they’ll deactivate our Slack workspace and delete all of our message history,” Kalam wrote.

“One could argue that Slack is free to stop providing us the nonprofit offer at any time, but in my opinion, a six month grace period is the bare minimum for a massive hike like this, if not more,” he added, before offering the following observation:

Essentially, Salesforce (a $230 billion company) is strong-arming a small nonprofit for teens, by providing less than a week to pony up a pretty massive sum of money, or risk cutting off all our communications. That’s absurd.

Hack Club decided to move to a rival open source platform called [7]Mattermost

[8]EU regulators let Microsoft off the hook after Teams unbundling pledge

[9]Salesforce sacrifices 4,000 support jobs on the altar of AI

[10]Salesforce data missing? It might be due to Salesloft breach, Google says

[11]Users in SAP's heartland call for greater license transparency

The rush job to make that possible was daunting.

“The small amount of notice has also been catastrophic for the programs that we run,” Kalam wrote. “Dozens of our staff and volunteers are now scrambling to update systems, rebuild integrations and migrate years of institutional knowledge. The opportunity cost of this forced migration is simply staggering.”

“This experience has taught us that owning your data is incredibly important, and if you’re a small business especially, then I’d advise you move away too,” he added.

[12]

The post understandably gathered a lot of attention, including from Slack CEO Denise Dresser, who Kalam says “got in contact with us and offered to put things right (I can’t exactly say what it is, but it’s better than the plan we were on previously!)”

But even with that new deal on offer, Kala said Hack Club is rethinking its vendor relationships.

“This ordeal has made us think more deeply about entrusting data with external SaaSes and ensuring that we own our data is definitely going to be a very big priority going forward. I’d encourage you to think the same way!” ®

Get our [13]Tech Resources



[1] https://skyfall.dev/posts/slack

[2] https://hackclub.com/

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aM0puFy9Y3No-lg7ZT7GNAAAAsg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aM0puFy9Y3No-lg7ZT7GNAAAAsg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aM0puFy9Y3No-lg7ZT7GNAAAAsg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aM0puFy9Y3No-lg7ZT7GNAAAAsg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[7] https://github.com/mattermost/mattermost

[8] https://www.theregister.com/2025/09/12/eu_regulators_let_microsoft_off/

[9] https://www.theregister.com/2025/09/02/salesforce_4000_jobs_ai/

[10] https://www.theregister.com/2025/08/27/salesforce_salesloft_breach/

[11] https://www.theregister.com/2025/09/16/sap_dsag_licensing_transparency/

[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aM0puFy9Y3No-lg7ZT7GNAAAAsg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[13] https://whitepapers.theregister.com/



This is what you get ...

alain williams

for using someone else's software on someone else's computers.

Re: This is what you get ...

Joe W

Run, Forest, run!

I would totally migrate away. Now.

And spread the word about how slack screws over clubs.

Re: This is what you get ...

jake

"And spread the word about how slack screws over clubs."

Please note that these "Slack" fuckwits have absolutely nothing to do with Slackware , the oldest continuously maintained (and some say the best) Linux distribution.

Re: This is what you get ...

cookiecutter

having been arguing against cloud for years, stories like this just justify my stance. With costs & the randomness of charging VMware & Nutanix pricing looks better and better, especially when you get to keep your data where you want it AND you know you won't get this craziness

AVR

$50K, payable in a week, apparently without warning makes Slack seem closer to a ransomware group than a legal corporation.

graemep

closer to a ransomware group than a legal corporation.

What difference did you think existed?

that one in the corner

When I first read the headline, I assumed that I'd misread "Slack" and this was just(!) going to be a story about another ransomware group with a name I didn't recognise threatening a non-profit: was expecting to read that they'd slipped a virus onto a PC.

Nope, the virus was SaaS.

Slack should ..

Anonymous Coward

.. have cut them some, er, slack.

Astonishingly bad PR move, but this is what happens when money comes first and customer needs last.

Now for the fun part: not only did this produce bad PR, it also advertised the competition Mattermost alongside. Oops..

Re: Slack should ..

Joe W

And the only way to get around this predatory behaviour was to raise a public stink. The only reason Slack did anything to make amendments was that this became public and they did not like the publicity. Imagine a nonprofit that does not have this social media reach.

Run your own machines, get a colocation somewhere or a cheap server from dunno, strato, and another from whoever so you have two plus local backup. Those are not too expensive, last time I checked, though I don't know about their actual requirements.

Re: Slack should ..

EricM

> Run your own machines, get a colocation somewhere or a cheap server from dunno, strato, and another from whoever so you have two plus local backup.

Good advice - if you have the know how to do so.

Size, build and maintain hardware (or use a hosted bare-bone VM), maintain OS, setup and maintain applications needed to build the functionalitity, build redundnancy/clustering as needed, do backups, test restores, resize/upgrade as needed for the business. Tune and optimize, provide call-out 24x7 as needed, ...

This can become a pretty expensive piece of labor, if you are not a hacking club and cannot do it inhouse.

And many of the non-profits or small for-profits using SaaS as the go-to choice never had the know how to begin with.

Re: Slack should ..

A Non e-mouse

For us geeks, this is all bread and butter stuff. But for most people it's not: It's totally outside of their domain experience. That's why they pay someone to do it for them. (It's why I take my car to a garage to be serviced)

I'm perfectly capable of running my own email system (SMTP, IMAP, web mail, anti-spam, etc) - and I did for about a decade. Eventually I got fed up of the grind of it and I now pay Fastmail for mail.

Independent backup is essential these days?

lsces

All of my email traffic is archived and backed up locally and that includes a number of long running support lists. I have been asked on a number of occasions either why do I keep 25+ year old traffic or why don't I just leave it on the server, but I don't have to worry about either the volume of stored messages or 'exceeding my quota', and I can go back through the history of a development at leisure. If that history was duplicated across many other users then it would remain available and THAT is what cloud computing should be about? Independent duplication not tied to one particular monopoly and protected from this sort of harassment.

That many key elements of the development scene have been hijacked by corporate greed just makes a transparent shared network even more essential. No reliance on the likes of github's central strangle hold, or any of the other single supplier systems?

keithpeter

The slack messaging system is owned by Salesforce which might appear to be doing a Broadcom (get rid of low revenue customers).

This saga has similarities with the Oracle raid on Java licence fees for universities here in the UK: both want to charge per seat for a large number of people who are not employees , volunteers and participants in the case of Hack Club and non-tech students in the case of the universities.

Lessons will not be lost on the young people I think.

https://www.theregister.com/2025/06/20/uk_colleges_45m_saving_deal/

Doctor Syntax

"Lessons will not be lost on the young people I think."

Just what I was thinking. Lessons learned when young should help them in their careers. Who knows, some of them may be making purchasing decisions in the future.

Amazon

Anonymous Coward

Are now using Slack over their Chime software internally. I wonder how THAT will end?

Slack...

Anonymous Coward

...must be in real trouble to push that hard for so little (relative to their possible revenue elsewhere) from a tiny organisation.

Placing a tiny non-profit in your crosshairs to squeeze reeks of desperation.

SaaS and the cloud are bad ideas.

Tron

The prelude to AI, which, as it stands, is an even worse idea.

Tech corporations do not provide services. They farm you for profit.

it has Intel Inside