Finances & Grants
While some types of
adoption can be expensive, financial programs and resources may be available to
help you with these costs. Whether you are interested in adoption tax benefits,
adoption assistance programs from your employer, or the adoption subsidy
program, we can help you find the information you need. You might want to begin
your research with an excellent resource guide from the
National Endowment for Financial Education: How to Make
Adoption An Affordable Option.
Federal Tax Adoption
Credit
You may be able to
reduce the cost of your adoption by applying for an adoption tax credit on your
federal tax return. For adoptions finalized starting in tax year 2002, the
credit is up to $10,000 per adoption. (Prior to 2002, the tax credit was $5,000
per adoption or $6,000 for the adoption of a child with special needs.) The
$10,000 credit also applies to international adoptions after finalization. The
tax credit limit is for expenses associated with each adopted child, rather
than an annual limit. The tax credit benefits moderate-income families most; it
phases out for high-income families. The phase-out starts for families whose
adjusted gross income exceeds $150,000. The tax credit is eliminated entirely
once adjusted gross income reaches $190,000.
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 .
Employee Benefit
Programs
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.
Credit Cards,
Frequent Flyer programs & Loans
Families adopting
internationally 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.
Some
Foundatons and Sites that Offer Assistance:
A Child Waits
Foundation
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
http://www.achildwaits.org/
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.
http://www.achildsdesire.org/fundraising.htm
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
http://www.hflasf.org/adopt-loans.html
Funds 4 Families
Please visit
http://www.funds4families.com/ 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.
The National
Adoption Foundation
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
http://www.nafadopt.org/NafGrants.htm
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
website at
http://www.homestead.com/brightfutures/
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://
www.jsw-adoption.org/
To contact the fund, please call (262)268-1386 or (877)905-2367, email address
info@giftofadoption.org
Brittany's
Hope
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. http://www.brittanyshope.org/
HIS 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.)
http://www.hiskidstoo.org/
Shaohanna's
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
grant@shaohannahshope.com
or call them toll free at 1-800-784-5361. Serious inquiries only please!
http://www.shaohannahshope.com/Grants.htm
The 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
http://www.theshepherdscrook.org/
World
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.
http://www.wacap.org/
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