# Small Nonprofit Retirement Security Act of 2025

This bill makes it easier for small nonprofits to offer retirement savings plans to their employees. Right now, many small nonprofits skip offering retirement benefits because setting up and maintaining these plans is expensive and complicated. This bill creates a new type of simplified retirement plan specifically designed for nonprofits with fewer than 500 employees, similar to plans that small businesses can already use.

The main benefit is cost savings. Nonprofits using this new plan would get tax breaks and wouldn't have to follow as many complicated rules as traditional retirement plans require. This means nonprofits can spend less money on administrative costs and more money on their actual mission. Employees at these nonprofits would get access to retirement savings options they might not otherwise have, which is especially important since nonprofit workers often earn less than their for-profit counterparts and need help saving for retirement.

The bill also allows multiple small nonprofits to band together and share one retirement plan, which spreads costs even further. This is particularly helpful for nonprofits in the same field or region that want to offer competitive benefits to attract and keep good employees. For workers, this means more nonprofits can afford to offer retirement benefits, giving employees a better chance to save for their future through payroll deductions and employer contributions. Essentially, the bill removes barriers that have prevented small nonprofits from offering retirement security to their staff.