The federal adoption
tax credit is more beneficial than a simple tax deduction. Under the tax
credit, adoption expenses may be deducted from your overall federal tax
liability. For example, if your federal tax obligation is $4,000 and you have
$3,000 in adoption expenses, your tax liability is reduced to $1,000.
Additionally, if your tax bill is smaller than the amount of your expenses, you
can carry forward the unused portion of your adoption tax credit for the next
several years. Qualified adoption expenses may include adoption fees, attorney
fees, travel costs, including necessary transportation, meals, and lodging. If
you are receiving reimbursement for the allowed adoption expenses from another
source, such as the Adoption Subsidy program, or from an employee benefits
program, there are limitations on the use of the tax credit. To learn more
about the Federal Adoption Tax Credit, you should consult your tax professional
and IRS Publication 968.
Perhaps your employer
is among the roughly 25% of companies in the United States that offer some form
of adoption benefits to their employees. Typical benefits may include
reimbursements of adoption expenses; paid leave in addition to vacation time,
sick leave, or personal days; and unpaid leave. Reimbursement amounts can run
from $1,000 to $10,000. Adoptions Together maintains a list of employers that
offer adoption assistance. To find out whether your employer offers adoption
benefits, contact the human resources office where you work.
Even if your company
does not now offer adoption benefits, you may be able to persuade your employer
to do so. Studies have shown that adoption benefits are among the most
cost-effective advantages an employer can offer. We have an area listing
employers offering benefits, and showing you how to make a proposal to your
employer. Visit that section here.
Frequent Flyer programs & Loans
typically travel overseas to complete their adoptions. You can use frequent
flyer miles to reduce the cost of airfare significantly. Many credit card
companies offer frequent flyer miles as incentives. Check with your individual
credit card issuers to see if this benefit is available to you. Many families
in our international program pay their adoption expenses with their credit card
so they can accumulate frequent flyer miles, thereby reducing the cost of their
adoption travel expenses. A high percentage of families take out a 2-4 year
personal loan to help cover adoption expenses.
Foundatons and Sites that Offer Assistance:
A Child Waits
A Child Waits Foundation provides low interest loans for families who do not
have any other option than to request a loan in order to proceed with
international adoption. You can visit
to learn more.
A Child's Desire
A Child's Desire offers adoption grants to nonprofit agencies, and
they also offer an adoption fundraising program to adopting families.
Hebrew Free Loan Association
Hebrew Free Loan Association offers adoption loans (interest free) to Jewish
families who demonstrate financial need and strong desire to adopt a child.
Please visit their website at
Funds 4 Families
or call (800) 451-3372 to find out more about home loans such as
home equity plans, debt consolidation plans and refinancing plans. Also you can
consult your bank or other current mortgage lender and a tax person regarding
some tax benefits of the possible loans.
Grants ranging from $500 to $4,000 are available to prospective
adoptive parents 4 times a year. You can access to the National Adoption
Foundation's website at
or call (203) 791-3811. For unsecured loans, please
call (800) 626-2760 and for secured loans (800) 841-1982.
Bright Futures Adoption Assistance Foundation
The Bright Futures foundation helps orphans to find forever families by
providing small grants to prospective adoptive parents. You can visit their
Gift of Adoption Fund
Grants ranging from $2,000 to $5,000 are available monthly to
families adopting children with serious medical issues and for low-income
families. You can access Gift of Adoption Fund's website at http://
To contact the fund, please call
(262)268-1386 or (877)905-2367, email address
is a little different than
most grant programs. They put grant money on specific children that are
submitted to them by placing agencies in the hopes of getting potential
families interested in the child. On their site you can see a photo listing of
children and how much the grant is that is being offered for that child.
KIDS TOO is a Christian non-profit international humanitarian aid
organization that provides aid to orphans and widows in several countries -
their primary focus is Ukraine, Russia,and Albania. For parent(s) adopting
international children, His KidsToo! provides an adoption grant of up to $2,000
for one child, and up to $4,000 for two children. Grants are paid directly to
the agency or facilitation service (for independent adoptions, grants approved
on a case-by-case basis.)
Hope is dedicated to caring for orphans by engaging the church and
helping Christian families reduce the financial burden of adoption. They
accomplish this by awarding financial adoption grants to qualified families
already in the process of adopting. The size of the grant awarded is determined
by several factors, the most important being need. With a commitment in faith
by the family, Shaohannah's Hope will provide up to $7000 toward the cost of
adopting, thereby reducing the financial barriers and allowing more families to
experience the miracle of adoption. Don't let finances keep you from adopting a
child. To receive an application packet, send your contact information to them
via e-mail to
or call them toll free at 1-800-784-5361. Serious inquiries only please!
Sheperds Crook Ministries offers financial assistance to Christian
families who are led to adopt any of the children listed on their web site.
This is accomplished by awarding grants as their funds allow. Please contact
them via e-mail if you desire an application for financial aid.
The Shepherd's Crook Ministries
P.O. Box 773
West Chester, OH 45071
Association of Children & Parents is a well-established adoption
agency offering financial assistance in the way of loans & grants to
perspective parents that adopt through their organization. Their Promise Child
Program has specific waiting children from all their country programs that have
almost all fees waived for their adoptions. These children are selected by the
WACAP staff and grant money provided to WACAP pays for almost the entire
expense of the child's adoption. Call WACAP and ask for a staff member working
under their "Family Finders Project" regarding children available.