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In my SharePoint site I have enabled sharing with external users and it works well.

But, when I want to alert the same external user with an email ("Alert me when items change" - "send alerts to"), I am getting the message :

"Your organization's policies don't allow you to share with these users. Go to External Sharing in the Office 365 admin center to enable it." (but it IS enabled).

It is working if I use Flow, so no real problem, the thing is our customers want to use the alert function. Any ideas? Is it a bug? Grateful for answer.

  • when you share the documents with external than what option you pick, require sign in or not? – Waqas Sarwar MVP Feb 1 '18 at 13:31
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There are couple of thins you have to check.

  • First make sure, you shared the document with external user with require sign in option.
  • Now if you set the alerts then he will get it
  • if not getting then you have to ask the user to sign in and access the file after that you should be able to setup alerts for him or he can do by himself.

I did test and above are the working scenario for me. i got hint from here: https://answers.microsoft.com/en-us/msoffice/forum/all/sharepoint-external-users-and-alerts/640afe76-2aab-4699-a001-6480cfd25c13

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