Financing Your Adoption
For many families, the expenses related to adopting can be one of the greatest hurdles. We have provided some resources below that can help.
Read: How to Lobby Your Employer for Adoption Benefits
Tax Benefits
On December 17th 2011, President Obama signed the 2010 Tax Relief Act,
a package of income tax, estate tax and unemployment provisions – including one huge benefit for adoptive families. This act extends the adoption tax credit through 2012!
Families filing through 2012 may take this credit for adoption-related expenses – reducing their tax bill up to $12,170 in 2012.
Also read: Six Things To Know About The Adoption Tax Credit
Employee Adoption Assistance Benefits
Many employers help their employees when they adopt by reimbursing adoption expenses up to several thousand dollars. If your employer does not offer this benefit, call Adoption and the Workplace at the National Adoption Center (800-TO-ADOPT) for materials to guide you in requesting this benefit from your employer: www.adopt.org.
Many companies offer adoption benefits including AARP, Abbott Laboratories, Aetna, Amoco, Bank of America, Bell Atlantic, Borden, Chase Manhattan, Chevron, Chrysler Corp, CIGNA, Coca Cola, Daimler Chrysler, Deloitte & Touche, Delta Airlines, Dominoes Pizza, Dow Chemical, Dupont Merck, Fidelity Invesments, Frito Lay, Glaxo Wellcome, Hasbro, HBO, IBM, KMart, Lexmark, Mattel, MBNA, Microsoft, Motorola, Nestle, Pepsi, State Farm, UPS, Wendy’s, and many more. A more complete listing is available at www.adoptionbenefits.com
Military families
The U.S. military will reimburse active duty personnel up to $2,000 in adoption expenses after adoption finalization has occurred.
Shaohannah’s Hope is a Christian organization that offers up to $7,000 towards the cost of adopting. www.shaohannahshope.com
A Child Waits provides loans up to $10,000 for one child. They are interested in assisting families who can financially support a child and repay the loan, but who do not have the current funds to adopt. 1136 Barker Rd., Pittsfield, MA 01201. www.achildwaits.org
Christian Advocates for Adoption (CAFA)
Funding your adoption through CAFA is not by means of a grant, loan or gift from this ministry, but by inviting others to participate with you financially in this blessed event. Scriptures makes clear that it is more blessed to give than receive (Acts 20:35) and that when we give and sow we will in turn reap and be blessed (Luke 6:38; Gal. 6:7). By asking for support for your adoption you are opening a door of opportunity to others to participate in the cause of the fatherless. Working together will help you to raise up to one half of the cost of your adoption. Any funds raised beyond the goal will be used to further the ministry of CAFA and assist other orphans find their place in loving Christian families. For details, visit their web site at: www.cafadopt.org
Capital One offers a credit card with a limit of up to $20,000 at a fixed rate of 9.9% over the long term (not just an introductory rate). www.222.capitalone.com
The National Adoption Foundation assists adoptive families with adoption financing. NAF offers grants from $500 to $4000 and unsecured loans through MBNA. www.nafadopt.org
Mother’s Love Fundraising
An adoptive mother is helping to plan fundraising events for prospective adoptive parents http://www.amotherslovefundraising.com
Additional Grants
Additional Grants are available through the following organizations:
Gift of Adoption Fund http://www.giftofadoption.org
God’s Grace Adoption Ministry http://www.ggam.org
The Hebrew Free Loan Association offers interest-free loans to Jewish families who wish to adopt children internationally or domestically. www.hflasf.org/adopt-loans.html
Adoption.com offers financing options through an online pre-qualification form. www.adoptionfinancing.com
The National Endowment for Financial Education (NEFE) offers a FREE booklet entitled “How to Make Adoption an Affordable Option”. This booklet provides information for all prospective adoptive parents regarding financial assistance, benefits and tax breaks for all types of adoptions. It also provides a breakdown of what fees may be involved in the adoption process. The booklet is available on the NEFE Web site at: http://www.nefe.org/adoption
State Adoption Benefits: Some states offer a non-recurring adoption expense reimbursement. Families may be able to apply for reimbursement of adoption related expenses. These expenses may include the homestudy fee, costs for travel to meet the child, attorney’s fees, etc. Each State sets a cap for the maximum amount of reimbursement, which cannot exceed $2,000. You must apply for this benefit before your adoption is final.The North American Council on Adoptable Children offers information on state adoption subsidies. www.nacac.org/adoptionsubsidy.html