Our users need to manage a distribution group in Outlook and want to be able to add external mail contacts to the group. We don't want to have to create a mail contact every time they need to add a new email. Is there a way we can let them add mail contacts without giving them access to the Exchange server?
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Can't be done.
To be a member of a group in Exchange you need to be a mail enabled object - whether a contact, mailbox or another group. You cannot just add an external email address to the group.
Your best option is to use an external service. If the groups are fairly small then the free tiers at a number of the bulk email services will probably work for you.

Sembee
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