While a family’s heart might be set on adoption, the financial cost for adoption, which stems from attorney fees, agency fees, and home studies etc., may be a significant barrier that stops a family from pursuing the adoption. Fortunately, there are various options for financial assistance in financing an adoption, and potential parents should be aware of the options as they prepare for adoption.
1. Grants
One of the most financially ideal options for financing your adoption is through grants. Through various nonprofits, potential parents may apply for grants. Since there is no interest or necessary repayment, the grants are basically a monetary gift. The application process may include an application fee, letters of recommendation, and income tax return information.
Resources:
Gift of Adoption is a Georgia chapter of a nonprofit that offers up to $10,000 in grants.
Help Us Adopt — Qualified prospective adoptive parents can receive up to $15,000 toward adoption expenses.
National Adoption Foundation - You can apply for a grant up to $2,000.
ABBA Fund - Offers adoption grants for Christian families.
2. Fundraising
In the era of GoFundMe, fundraising is now easier than ever. Whether you fundraise online or send out fundraising letters to friends and families, there are several different fundraising approaches, and a quick internet search presents creative money raising ideas. The beauty of fundraising is that your approach may be tailored to your situation and personality, and it allows your loved ones to participate in the adoption.
Resources:
GoFundMe
AdoptTogether is a worldwide crowdfunding platform exclusively for adoptions.
3. State Adoption Assistance Programs
Depending on the state, there may be adoption assistance programs funded by your state. The State of Georgia, for example, offers adoption assistance for specific cases. The Georgia Adoption Assistance program is meant to facilitate the placement of “special needs” children into adoptive homes, and the program requires that the applicants show that adoption would not take place without the assistance. The State defines “special need” children as (a) a child who has been in the care of a public or private agency or individual other than the legal or biological parent for more than 24 consecutive months; (b) a child with physical, mental, or emotional disability, as validated by a licensed physician or psychologist; or (c) child who is a member of a sibling group of 2 or more placed in the same home (for adoption). Georgia’s program includes recurring Monthly Assistance Benefit and also Non-Recurring Adoption Assistance.
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4. Adoption Tax Credit
Some families within a certain income bracket are eligible for the federal Adoption Tax Credit for each adopted child. To be eligible for a tax credit, the adoptive parents must have adopted a child other than a stepchild and also earn an adjusted gross income lower than $254,520. Families who earn between $214,520 to $254,520 may claim a partial credit while those earning below $214,520 may claim a full credit. If the criteria is met, the adoptive parents may claim a tax credit which, if eligible for the full credit, is as high as $14,300 per child. The year that the parents must claim their tax credit depends on the type of adoption and could be as soon as the year the adoption was finalized or as late as the year following the finalization.
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5. Loans
Adoption loans also may be a viable option for your family. Like every other type of loan, adoption loans require you pay back the money and interest over time. When you apply for the loan, the financial institution may assess financial information such as your credit and assets. Loans allow you to get a large amount of money in a short timeline, but it is important to evaluate your other options and thoroughly research loan providers before taking out a loan as it is a significant financial step.
Resources:
Pathways for Little Feet - Receive an interest-free loan to repay at a rate that’s based on each individual family’s application.
ABBA Fund – Offers interest free loans to Christian families.
LightStream – A division of SunTrust Bank, offers low-interest, fixed rate adoption loans.
Mortgage and Home Equity Loan -You can consult with your financial advisor about writing off the interest on your annual tax return.
6. Employer Assistance
Another financial adoption resource to investigate is your employer. Some employers offer adoption assistance through financial assistance, informational resources, or parental leave. Employer assistance may vary on the type of adoption and also on the full-time/part-time status of the employee. To learn more about your employer’s adoption benefits, you should inquire at your Human Resources department.
Resources:
Dave Holt Foundation is an organization that recognizes companies and other organizations that offer adoption benefits.
7. Explore Your Assets
You may have inheritances or trusts in your name, or you may be able to borrow against your life insurance policy or home equity line of credit. Also, don’t forget your 401(k). While it may sound outrageous to pull from your 401(k) to subsidize an adoption, keep in mind that it requires no application fee. You can pay back a 401(k) loan with paycheck deductions for up to five years, and you’ll have no credit score stress at all.
Resources:
Inheritances or Trusts in your name.
Remember your 401(k)
8. Select an Adoption Agency that Does Not Request a Fee Deposit
Some adoption agencies require you to make a deposit on your placement fee, even when a child hasn’t been placed with you yet. This can be financially burdensome if your finances are tight and you don’t have the money to pay upfront for services you haven’t yet received. Consider adoption agencies that only require these fees upon placement of your child.
9. Savings
People often begin a few years in advance adding bonus money, tax refunds, etc. into an adoption savings account. Others reported forgoing vacations and retirement savings so they could add money into their adoption fund.
THE BOTTOM LINE: Do not let cost deter you from adopting! Do some research, speak to other adoptive families to learn about their experiences. Last, but not least, speak with your family and friends to see if they would be willing to contribute financially to your family. Keep pressing forward without letting fears deter you from legally joining your family together.
Here's what our clients have to say
after their adoption process:
"Christina was my attorney for the adoption of my two children. My family is now complete! I could not be happier with this law firm and my attorney. I would recommend her without reservation!" G. Kirkland
The Campbell Law Practice, LLC’s Statement Regarding COVID-19
Although the state is slowly opening back up, the courts are still operating under an emergency order until further notice. However, The Campbell Law Practice, LLC remains open and available to handle your adoption case. Our team is still working and the office phones will continue to be answered during normal business hours. While we are working remotely, rest assured that your case will not just be sitting in a pile for several weeks. In fact, The Campbell Law Practice has completed over 25 successful adoption hearings virtually during the Court's emergency order!
We are also still accepting your referrals! New consultations may be scheduled using Zoom conferencing or telephone consultations. Please, do not let COVID-19 come before your family’s best interest or security. One of the greatest gifts that you can give a child is a family. Contact The Campbell Law Practice, LLC at (404) 981-5257 and schedule your initial consultation.