How to Finance Your Adoption
Adoption Tax Credit: This provides a tax credit (an amount that can be deducted directly from the taxes you owe) for expenses incurred in the adoption of a child who is not the child of the taxpayer’s spouse.
Details about the credit differ by type of adoption:
♥ For the adoption of U.S. Children with special needs (any child currently in state foster care), the law provides $12,150 credit, regardless of expenses incurred.
♥ For the adoption of U.S. Children without special needs, parents can take a tax credit of up to $12,150 for adoption expenses incurred, even if the adoption is never finalized.
♥ For the adoption of children from other countries, parents can take a tax credit of up to $12,150 for adoption expenses, but only if and when the adoption is finalized.
In addition, substantial state tax credits are also available in many states. For more information regarding the adoption tax credit please contact a tax professional or log onto www.irs.gov.
Grants: This process usually includes an application process. However, it is not a loan and the money will not need to be repaid by you. Below are a few grant websites specifically for adoptive families.
General:
Boatner Family Foundation – This foundation provides grants from $1,000 up to $10,000. They require an agency approval, a financial statement, and a formal application. P.O. Box 132272, The Woodlands, TX 77393
FORE Adoption Foundation – Fore Adoption wants to help United States children find permanent loving homes by providing financial support in the form of direct grants to adoptive parents for attorney and agency fees, court approved birthmother expenses and an education fund for the adoptive child. www.foreadoption.com
Gift of Adoption Fund – Applicants are evaluated based on their income, assets, liabilities, earning potential, and other financial resource opportunities. Preference is given to applicants who are experiencing extraordinary financial hardship. Grant amounts vary between $2,000 and $5,000. Grants are awarded monthly. www.giftofadoption.org
God’s Grace Adoption Ministry – Provides grants and financial assistance to families participating in all types of adoptions. All applicants must be married and currently have an income of $60,000 or less a year. www.ggam.org
Grants For Adoption – This organization seeks to provide much needed funds to those in need by helping offset the large expense of adoption. Grants will be available to those seeking to adopt through a licensed adoption agency or licensed adoption professional, in either a domestic or international adoption program. www.grantsforadoption.com
Helping Kids Cope – This organization offers a “Parents-To-Be-Award” for waiting adoptive couples (all types of adoption considered). www.helpingkidscope.com
JSW Adoption Foundation – Grants awarded are valued at $2,000 and up. Preference is given to childless applicants and those who are experiencing extraordinary hardship and financial need. www.jsw-adoption.org
Kingdom Kids Adoption Ministries – Kingdom Kids Adoption Ministries desires to encourage, educate and equip families to adopt children, especially those who are difficult to place or have special needs. Toward that end, they help families raise finances for adoption through their adoption fundraising/grant program. www.kkadoption.com
Open Arms Adoption – Open Arms Adoption grants are not restricted by country, marital status, or other considerations. Grant applications are accepted from all applicants and awarded twice annually. www.open-arms.org
Show Hope: Shaohannah's Hope – This organization was founded by Steven Curtis Chapman to provide grants to Christian families. www.showhope.org
The National Adoption Foundation – They provide grants to families involved in all types of adoption (income is not a consideration). www.nafadopt.org
Help US Adopt – Grants for any US citizen pursuing any kind of adoption. www.HelpUsAdopt.org
National Adoption Foundation – Grants for any adoptive family pursuing any type of adoption. www.nafadopt.org
Parents for ME – Grants for parents pursing parenthood via adoption or medical intervention. www.parenthoodforme.org
International Adoptions:
Adorable Adoption – Adorable Adoption offers grants for qualified families who are pursuing international adoption with the Yunona adoption agency. Grants are as follows: $2,000 per one child or $4,000 for two children. www.adorableadoption.com
African American Enrichment Program – A program to help qualified families adopt African American newborns, children, and sibling groups. www.africanamericanadoptionsonline.com Ava’s Hope – Any married couple who is seeking to adopt a child from overseas but can’t afford to do so for any reason is eligible to apply to become an Ava’s Hope Family. www.avashope.org
China Care Foundation – China Care Foundation is especially interested in helping families who are adopting special needs children. To encourage the adoption and care of orphans from China, the China Care Foundations provides financial aid in the form of grants or loans for the adoption and/or medical treatment of orphans. www.chinacare.org
Christian Adoption Resources – Provides grants to families adopting through Celebrate Children International. www.christianadoptionresources.org
For This Child – Grants are given on an as-needed basis to prospective adoptive parents adopting from Guatemala. www.forthischild.org
His Kids, Too! – For parents adopting international children, His Kids Too! provides an adoption grant of up to $2,000 for one child, and up to $4,000 for two children. www.hiskidstoo.org
International Children’s Adoption Resource Effort – Seeks to provide financial assistance to families adopting internationally. They ask that you exhaust all other available sources of funding before applying for assistance. www.intlcare.org
LOOC Foundation – This foundations mission is to provide the financial means to fund as many adoptions of abandoned baby girls as possible from the orphanages of China. www.looc.org Promise the Children – Awards grants to families adopting internationally. Families must be with an agency that is approved by PTC. www.promisethechildren.org
Siblings Adoption Agency – Siblings Adoption offers grants toward international adoption for qualified families. Grants are $2,000 for one child and $4,000 for two children. 508 High Point Drive, Golden, CO 80403 (email: info@siblingsadoption.com)
Special Needs Adoptions:
Ibsen Adoption Network (Washington Only) – The Ibsen Adoption Network give adoption grants to families living in the state of Washington. Preference is given to special needs adoptions. The allocation committee meets twice a year to consider requests. Grants average $1,500 per family. www.ibsenadoptionnetwork.com
Holt’s Special Needs Adoption Fund – This fund assists families adopting through Holt Adoption Agency who need additional financial support in order to adopt a waiting child. www.holtintl.org/adoption/assistance.shtml
Home For Good – This organization gives grants focusing on the adoption of older children, children with special needs, and sibling groups who have little or no hope of being adopted without intervention. www.hfgf.org
Shepherd’s Crook Ministries – This ministry offers financial assistance to Christian families who are led to adopt any of the children listed on their website. www.theshepherdscrook.org
Loans: Many Credit Unions offer an adoption loan program. Most banks offer home equity loans for adoptions or equity lines of credit with the interest qualifying for a tax deduction. Check with your bank and tax accountant concerning eligibility for the tax deduction. Also, below are a few online loan options:
A Child Waits Foundation – An organization offering low interest loans for families adopting internationally. Eligibility is based upon financial need. Their objective is to help families who have exhausted all other sources of funds and could not proceed with the adoption without financial assistance. www.achildwaits.org
Abba Fund – The Abba Fund provides financial assistance to parents who believe God is calling them to grow their families through adoption. They offer interest free covenant loans. www.abbafund.org
Adoption Financing – Adoption financing helps adoptive families find the best financing for their needs by networking with numerous lenders. www.adoptionfinancing.com
Adoption Network Law Center – Adoption Network offers credit-based loans featuring 24-84 month terms. Call: 1-800-FOR-ADOPT
Child Adoption Funds – This non-profit organization helps families create a tax-exempt entity that can reduce the cost of adoption. It can provide tax deductions by giving families the opportunity to set up their own foundation accounts. www.childadptionfunds.org
National Adoption Foundation – The NAF offers unsecured loans through a revolving $9 million loan bank for adoptive parents. www.nafadopt.org
Oxford Adoption Foundation – The goal of OAF is to increase the number of children who are adopted by making available low interest loans to eligible families to help with some of the cost associated with adoption. www.oxfordadoption.com
TMG Foundation (matching grant) – Life International helps remove the financial burden of adoption by offering matching grants which encourage the adopting couple’s church family to financially and prayerfully support the adoption. They also offer interest-free loans to eligible families. www.tmgfoundation.org
Life Insurance: Many families borrow from a 401K or Life Insurance Policy to cover the cost of adoption.
Employee Benefit Programs: An adoption benefits plan is a company-sponsored program that financially assists or reimburses employees for expenses related to the adoption of a child and/or provides for paid or unpaid leave for the adoptive parent employee. Financial assistance may be reimbursement for specific costs or a set amount of money, regardless of actual expenses.
Adoption leave may be paid or unpaid and provides the time following the adoption for the parent to help the child bond and feel comfortable. Some companies offer a combination of financial help and leave time.
A list of companies who provide adoption benefits can be explored at: www.adoptionfriendlyworkplace.org/employers.asp
www.adoptlink.com/benefits.htm
Increasing numbers of forward-thinking corporations now offer adoption benefits as part of their employment benefit package. If your company doesn't offer an Adoption Assistance program yet, now is a good time for you to present the concept for implementation!
♥ To find out more information, check out
www.adoptivefamilies.com/articles.php?aid=168
♥ www.davethomasfoundation.org
Informational Resources:
A Child's Desire – An educational site that provides ideas for adoption fundraising. www.achildsdesire.org/fundraising.htm
Cradle of Hope – Excellent and comprehensive list on financing an adoption. www.cradlehope.org
Love Knows No Borders – An educational site with information on grants. www.loveknowsnoborders.com
National Council for Adoption – Information on how to finance your adoption. www.adoptioncouncil.org/financing.htm
National Endowment for Financial Education – Information on how to make adoption an affordable option. http://www.nefe.org/tabid/193/Default.aspx?search=adoptionindex.html
The Adoption Guide – Has information about where to look for help, what subsidies are available, and where loans and grants may be found. www.theadoptionguide.com
Adoption.com – Information on how to make adoption an affordable option. www.adoptionloans.com |
