Adoption Financing
Now that you’ve decided you want to adopt, how do you finance adoption? Not to worry; there’s good news! Adoption financing is available to help with the cost of adoption for almost all families and we make that process easy.
We believe that loving families and family members who are called to open domestic adoption should be able to open their hearts to a child.
How Much Does Adoption Cost?
The cost of adoption depends on the type of adoption you pursue. Private adoption costs can range from $30,000 to $60,000.
Expenses may include:
- Home Study: A report prepared by a home study social worker that is required for every adoption which includes background checks, financial and medical checks and a home visit.
- Attorney Fees to prepare and file documents and for final adoption hearing
- Counseling: Peer and Professional Counseling
- Birth Mother Expenses: Such as medical, transportation to doctor and other pregnancy related expenses
- Travel Expenses: May be incurred if baby is born out or your area
- Other Expenses
It is important to review the terms of your contract with your agency to understand what costs are covered with their fees and what costs are not. Also, make sure you understand what the entire cost of adoption may be so you don’t find yourself in a financial situation you are not prepared for.
Adoption Financing Options
Loans for Financing Adoption
If you choose to obtain an adoption loan, do your research. There are many financial institutions and organizations that offer adoption loans. This is not a one-size fits all scenario. You will want to consider your own specific needs and circumstances. Then you will want to compare rates and terms to find the best fit for you.
Some of these programs have very specific requirements to obtain a loan, while others focus more on your credit and are offering personal loans. As you research these loans, you will want to pay close attention to terms and conditions and make sure you are comfortable with the payment schedule.
There are some great loan comparison sites online. Narrow down your options then reach out to a few and confirm their rates and their qualification requirements.
At Lifetime, we recommend LightStream for adoption loans. Additionally, with good credit, you can get a low-interest, fixed-rate loan with no collateral, fees, or home equity requirements.
There are other organizations that offer adoption financing loans, many with very low or no interest. Additionally, you can explore other options such as a home equity loan, whole life insurance loan, or even a loan from your 401k.
Taking out a loan may not be ideal, but it can be a good solution for covering a large, one-time expense. Also, when choosing a loan, consider when you will be able to repay the loan fully. Will this be a long-term repayment plan, or will you receive the adoption tax credits and perhaps adoption assistance from your employer that will allow you to pay back the loan sooner.
Before taking out a loan, consider all of your options when it comes to financing your adoption journey. These programs are limited at times during the year and have some restrictions.
Adoption Grants
Adoption grants are incredibly popular because they involve no personal cost and carry no interest, unlike other financing options such as adoption loans. Grants are like gifts in that they do not need to be paid back over time. Essentially, they are free grants for adoption.
Another benefit of an adoption grant is that it doesn’t create financial risk. These grants are a risk-free option to pay some or all your adoption costs. You may want to use both an adoption loan and a grant to fund your adoption. Adoption grants are not without challenges, though. Common challenges include an extensive application process, lots of competition, and a long waiting period. Plus, the charity organizations providing funds usually have limited budgets.
Because of these challenges, it’s important not to wait until the last minute to apply for an adoption grant. Instead, give yourself lots of time for the application process and waiting period. Along with this, don’t plan your adoption financing with the assumption you’ll get a grant. They can be challenging to get.
Through our Adoption Finance Coach program, we are able to help guide families to many different grants, identifying which grants they are eligible for and most likely to receive funds from. Our one-one-one coach will even help you with grant applications and writing your story!
Crowdfunding as an Adoption Financing Option
Crowdfunding is a popular way to raise funds for your adoption. It’s a good way for you to get the word out to your friends and family. First, you’ll create a platform at an approved crowdfunding site like:
Make sure to include your story about adoption and how much it will cost.
Next, you’ll need to let your friends and family know about your adoption fundraiser. Most crowdfunding companies require a small fee to pay for administrative costs. You’ll have all the tools you need to create an amazing crowdfunding campaign. Set up the funds to go directly to your adoption agency so all the donations will be tax-deductible for the donors.
Fundraising – A Fun Adoption Financing Option
Many adoptive families use fundraising to help offset the costs of adoption. There are so many ways to have an adoption fundraiser. Some hopeful adoptive parents have had online auctions, sold adoption t-shirts, set up car washes, or sold homemade salsa.
Work with your church to have a bake sale or other event that your congregation can attend to help you raise funds. Use social media sites like Facebook to notify your friends or family about these events. Most will be happy to help you realize your dreams of adopting a baby.
Organizations like Both Hands are a great place to start. This organization helps both widows and those looking to adopt.
Lifetime Adoption Foundation 501 (c)3
A Lifetime Adoption Foundation offers educational assistance in the form of scholarships to women who have lovingly placed a child through adoption. For children who might otherwise linger in foster care or become institutionalized, the Foundation provides partial funding to adoptive parents. Additionally, the funding is dedicated to helping adopt those children with special needs or who otherwise may be hard to place.
By providing financial adoption grants, the costs of adoptions of special needs children, sibling groups, older children, and/or medically fragile children are lowered.
The Lifetime Adoption Foundation is dedicated to adoption education, support, adoption resources, and adoption financing assistance to those in need. All gifts of financial assistance are welcome. Gifts designated for a specific program or need are used for the benefit of the program indicated. All gifts and donations are tax-deductible.
Use the Federal Adoption Tax Credit as Adoption Financing
With the tax credit available to families who have completed their adoptions, the cost of adoption can be very affordable. Learning about the IRS’ adoption tax credit before you adopt can help set your budget when you can anticipate the credit you are entitled to. Additionally, when you file your taxes, you get an additional tax credit for each qualifying child you have per year. The tax credit phases out for taxpayers with high modified adjusted gross incomes.
Qualifying expenses for the adoption tax credit include necessary adoption fees, court costs, attorney fees, traveling expenses, and other expenses directly related to the adoption.
Adoptive parents who plan to claim the credit should file Form 8839, titled Qualified Adoption Expenses, and attach it to Form 1040. There is also a tax deduction for each qualifying child. (Please check with the IRS for updated information.) For more information and other downloads to required forms, please visit this link on the IRS website.
Employer Adoption Reimbursements
Many employers are now offering a range of benefits for their employees who choose adoption. Not only are employees eligible for some sort of paid leave, but many are finding that their employers are offering reimbursement to help defray some of the adoption financing expenses themselves.
Additionally, your employer may also offer an Employee Assistance Program (EAP). This is designed to help workers deal with dramatic situations in their personal lives. Moreover, you may find that speaking with an EAP counselor can aid the ups and downs of an adoption experience.
Check into your employee adoption benefit. More small- and medium-sized companies are offering some type of adoption credit for their employees.
For example, Verizon has a $10,000 adoption benefit, and Pepsi has a generous adoption benefit, as well. Small companies have found tax benefits to offering these adoption incentives to their benefit package. Start by asking your human resources department for details.
You can also find out more by contacting the Dave Thomas Foundation for Adoption’s “Adoption-Friendly Workplace” program. They work to make adoption an affordable option for every working parent. You may contact the Adoption Friendly Workplace at 1-877-777-4222 for details on how to request that your employer establish a program, or visit their website.
Military Adoption Benefits
The United States military has resources for adoptive families not available elsewhere. Active military families are eligible for a one-time adoption financing assistance subsidy program of up to $2,000 per child or $5,000 maximum amount for sibling groups.
These reimbursements and adoption financing benefits are provided to single or married adopting parents and can be used for domestic or international adoptions. For more information on the program, you may click here. In addition, Lifetime provides a discount for military adoption to show our gratitude for your service to the country.
Government Subsidies for Adoption Financing
Federal and state assistance to adopt a child is available. These subsidies can ensure that families who adopt hard-to-place or waiting children have the crucial services and financial resources to meet their children’s continuing needs.
Adoption subsidies are available for your child whether your home study was done by a public or a private agency, but will vary by state and region. Research what is available in your area.
However, it is often easier to have your adoption agency assist in the paperwork if you are adopting a waiting child through them.
Don’t take no for an answer, it can take a lot of work, and you will need help.
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Mardie Caldwell
Funding Your Adoption
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Lifetime Adoption, Inc. is a Licensed Child Placing Agency in both Florida and Arkansas. (License FL #100096562 & AR #00050809)
We are a Safe Haven Approved Agency.
Copyright © | Lifetime Adoption
Lifetime Adoption, Inc. is a Licensed Child Placing Agency in both Florida and Arkansas. (License FL#100084254 AR#00050809)
Copyright © | Lifetime Adoption