After they begin considering adoption, many hopeful parents are left facing the same question: How are we going to afford this? Can we get financial assistance for our adoption?
Cost can be a roadblock for many families pursuing adoption. Fortunately, there are several ways that financial assistance for adoption can help bridge the gap. Through grants and loans, crowdfunding, employer-provided adoption assistance, and the adoption tax credit, you can secure the funds you need to realize your adoption dream.
There are various ways to receive financial aid for adoption, and you can find one that works for you in this article. When you choose Lifetime Adoption, we’ll provide honest and transparent information about adoption costs so that you know what to expect.
How Do We Get Financial Assistance for Adoption?
Our team of experienced adoption professionals at Lifetime Adoption encourages couples to do all they can to budget for the cost of adoption. But after creating a family budget and sticking to it, where can a family find financial assistance to help with adoption fees?
Fortunately, there are many options. Some forms of adoption financial assistance will be available while others may not, depending on your financial situation and how far you are in the adoption process. We recommend consulting with a financial planner about these options.
Adoption Loans and Grants
Many organizations offer adoption loans and grants that families can apply toward adoption expenses. Adoption loans must be paid back, sometimes with little to no interest. A non-profit organization typically awards grants; you do not need to pay them back. Most grants require that you are currently working with an adoption agency and have completed an adoption home study. Both loans and grants may require follow-up photos or a summary of your adoption journey.
Some organizations will prioritize grants and loans for hopeful adoptive parents who seek to adopt older children, children with special needs, or sibling groups. Whatever your adoption preferences, an adoption loan or grant could be the financial assistance for adoption you need to ease your financial stress. Spend time researching all of your options. Here are just a few:
African American Enrichment Program – If you are an African American or biracial couple hoping to adopt, this grant can help your adoption dreams come true. Grants range from $1,000 to $4,000 depending on availability, as well as your financial circumstances and preferences.
LightStream – LightStream, a division of SunTrust Bank, offers low-interest, fixed-rate adoption loans starting at 9.49% APR for applicants with good credit. Their private online application is simple and takes only a short time to complete. Once approved, you choose when you want to have the funds deposited in your account.
ABBA Fund – ABBA Fund offers adoption assistance for Christian families. They provide interest-free loans as well as their Christian Family Adoption Grant. Instead of a traditional legal agreement, ABBA uses a covenant loan agreement. When you receive financial assistance from ABBA, you commit to honoring your covenant with God.
Lifesong for Orphans – Lifesong for Orphans offers creative fundraising tools, matching grants, and interest-free loans for qualified families. They base the level of financial assistance on the financial needs of the adoptive family, the child’s needs, the availability of funds, and support from the adoptive family’s church.
Social media and crowdfunding platforms have opened up fundraising opportunities like never before. You are no longer limited to neighborhood yard sales and bake sales to earn financial assistance for adoption. You can now bring your adoption fundraising efforts to a more global community. These crowdfunding platforms can help you connect with a wider audience and raise considerable funds quickly and efficiently.
AdoptTogether – Create your profile on the world’s largest fundraising platform and connect with people in your community and beyond to help fund your adoption.
AdoptionBridge – This ministry of Every Child Has a Name can help you bridge gaps in financing your adoption through crowdfunding, generous donors, and partner agencies.
GoFundMe – Create your site, share your story, and collect your funds on this easy-to-use platform.
Employer-Provided Adoption Assistance
Ask your employer if they offer benefits for employees who choose to adopt. Many employers offer a range of financial assistance benefits for adoption.
You may be entitled to reimbursements for adoption expenses such as adoption agency fees, legal fees, maternity fees for the birth mother, placement fees, and travel expenses directly related to the adoption.
Many employers have the same policies for new adoptions that they have for maternity leaves. You could be eligible for paid and unpaid leave.
Adoption Tax Credit
The adoption tax credit is another benefit that can make your adoption more affordable. This credit is available for both domestic and foreign adoptions. You can apply the adoption tax credit to adoption fees, court costs, attorney fees, traveling expenses, and other expenses directly related to the adoption.
The maximum amount for adoptions finalized in 2022 was up to $14,890 per child. Check with the IRS for updated information each year. If you adopt a child with special needs, you are generally qualified for the maximum amount.
Your tax benefit also includes income exclusion for employer-provided adoption assistance.
Hidden Funding Resources
In a recent live webinar hosted exclusively by Lifetime Adoption, our experts shared some common ways hopeful parents fund their adoption. Along with using your savings, generating additional income, holding fundraisers, and getting a loan, you’ll gain insight into a few hidden funding resources that most people aren’t aware of:
Any of these financial assistance options could significantly offset the expenses incurred during your adoption process. Financial assistance for adoption is right at your fingertips. With a little research and creativity, you can overcome any financial hurdles that stand in the way of growing your family through adoption.
Our adoption professionals are committed to your best interests during the adoption process. We’re monitoring your adoption budget — from initial budget planning to avoiding surprise expenses.
To help you with adoption fees, our coordinators can find an adoption opportunity that is within the budget you set. In addition, I have fixed Lifetime’s fees, and we won’t spring new costs on you once a birth mother chooses you.
Get started with your adoption journey today by filling out our online contact form to get more free information now. We’d love to help you begin this process!
Editor’s Note: This article was originally published on June 10, 2020, and has since been updated.
Founder of Lifetime Adoption, adoptive mom, adoption expert, and Certified Open Adoption Practitioner (C.O.A.P).
Since 1986, adoption expert Mardie Caldwell has been dedicated to bringing couples and birth parents together in order to fulfill their dreams.
“Many years ago, I was also searching for a child to adopt. We didn’t know where or how to get started. Through research, determination, and a prayer, our dream of a family became reality. I started with a plan, a notebook, assistance from a caring adoption consultant and a lot of hard work; this was my family I was building. We had a few heartaches along the way, but the pain of not having children was worse!
Within weeks we had three different birth mothers choose us. We were overwhelmed and delighted. Many unsettling events would take place before our adoption would be finalized, many months later. Little did I know that God was training and aligning me for the adoption work I now do today. It is my goal to share with our families the methods and plans which succeed and do not succeed. I believe adoption should be affordable and can be a wonderful “pregnancy” for the adoptive couple.
I have also been on both sides of infertility with the loss of seven pregnancies and then conceiving by new technology, giving birth to a healthy daughter. I have experienced first-hand the emotional pain of infertility and believe my experience allows me to serve your needs better.
It is my hope that for you, the prospective parents, your desire for a child will be fulfilled soon.”