Financing Your Adoption
Now that you’ve decided you want to adopt, where will you turn to get the funding to complete your adoption? Not to worry! The good news is that there is help for almost all families.
We believe that loving families who are called to adoption should be able to open their heart to a child. We are happy to provide information to help you cross financial hurdles that may stand in the way of your adoption dream.
Adoption costs can vary depending on the type of adoption you pursue, your state laws, as well as the birth mother’s state laws, legal requirements of your match, and other adoption-related expenses. The adoption costs may resemble costs involved with fertility treatment, in that you’re paying for professional experience and services to help you bring your baby home. Except in adoption, your investment of time and resources come with a greater chance that you’ll become a parent with much less cost than medical treatments. Many families are now choosing to forgo or limit fertility treatments, opting for adoption instead. Thankfully, there are many adoption financing options available today, including adoption loans and grants. It is possible to make adoption affordable, customized for your needs.
Please contact us to learn more about Lifetime’s services and adoptive family fees.
Explore Your Financial Options
- When you have good credit, you can finance all aspects of the adoption process with a low-interest, fixed-rate loan from LightStream. Visit www.LightStream.com for more information.
- Prosper offers low fixed rates, to learn more visit Prosper’s website for more information.
- Lifesong for Orphans – offers interest-free loans. Visit their website at www.LifesongforOrphans.org for more information.
- ABBA Fund – Requires references that should include your Pastor, an employer/co-worker and friend. Visit their website at www.AbbaFund.org to apply.
There are a number of organizations offering grants to qualified
adoptive families to help defray some of the costs of adoption. Please visit the specific websites listed to receive more information about these organizations and what they can do for you.
A 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 and, for those children who might otherwise linger in foster care or become institutionalized, partial funding to adoptive parents dedicated to adopting those children with special needs or who might be hard to place.
A Lifetime Foundation does this by providing financial adoption grants to help defray the costs of adoptions of special needs children, sibling groups, older children, and/or medically fragile children. We also have a large African American Enrichment Grant program – helping African American babies and children find permanent homes with loving adoptive families.
A Lifetime Adoption Foundation is dedicated to adoption education, support, adoption resources, and financial 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.
Federal Adoption Tax Credits
With the tax credit available to families who have completed their adoptions, the cost of adoption can be very affordable. Additionally, the IRS provides a $1,000 Tax Credit per qualifying child you have per year. The tax credit phases out for taxpayers with high modified adjusted gross incomes. Although the tax credit is set to expire, proposals to make that benefit permanent have received much legislative support. Find out how you can petition your legislature to keep this tax credit.
Qualifying expenses 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.
For more information and other downloads to required forms, please visit this link on the IRS website.
There is also a tax deduction for each qualifying child of $3,200. (Please check with the IRS for updated information.)
Employer Adoption Reimbursements
Approximately one-quarter of 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 expenses themselves.
Your employer may also offer an Employee Assistance Program, or an EAP. This is designed to help workers deal with dramatic situations in their personal lives. 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-size 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 – ask your Human Resource Dept 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 at AdoptionFriendlyWorkplace.org.
Military Adoption Benefits
The military has resources for adoptive families not available elsewhere. Active Military Families are eligible for a one-time adoption assistance subsidy program of up to $2,000 per child or $5,000 for sibling groups. These reimbursements and 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:
Government Subsidies for Adoption
Federal and state adoption assistance is available to ensure that families who adopt waiting or hard to place 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, so research what is available in your area. It is often easier to have your 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 the help.
Click here for help and more information: Child Welfare Information Gateway
Debt Shredder calculates the quickest method to pay off your mortgage and other debts while allowing you to build your adoption budget. The company determines an individualized strategy for you, based on your income, bills, living expenses, and financial goals.
They provide you with a simple, easy-to-use online tool to save both time and interest paid on your debt. With Debt Shredder’s software, coaching, and educational system, you can afford adoption!
To learn more and set up your complimentary 45-minute analysis, visit MyDebtShredder-Lifetime.com.
An adoptive mother herself, Mardie is the Founder and CEO of Lifetime Adoption
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Lifetime Adoption, Inc.
is a Licensed Florida Child
Lifetime Adoption is registered with the State of California under the provisions of the Registry of California Adoption Facilitators. (CA Family Code Section 8632.5)