Financing Your Adoption
Lack of finances is one of the biggest deterrents for families considering international adoption. While Faithful Charities Foundation cannot change the fact that adopting internationally is expensive, we are concerned that the expenses often make adopting prohibitive for wonderful families desiring to love an orphaned child. We are a licensed, not-for-profit 501(c)3 adoption agency. That means that Faithful Adoption can receive tax deductibe gifts from friends, family members, and employers, and apply the donation to your adoption.
And there is more good news! Awareness of adoption, especially international adoption, has risen dramatically within the last decade. And because of raised awareness and the efforts of many wonderful people, legislators, company executives, adoptive parents and others, more and more funding has become available to make an adoption work for you. Please feel free to phone the FCF office and speak with someone about questions or concerns you may have.
Tax Benefits
This is not a substitute for professional financial advice and should not be relied upon without consulting your tax advisor.
Federal Adoption Tax Credit
The federal government now offers an adoption tax credit of $10,000 to all adoptive families on qualifying expenses paid for a child's adoption. This tax credit is more valuable than a tax deduction because allowable expenses are subtracted dollar for dollar against your tax liability. Please download IRS Form #8839 - Qualified Adoption Expenses.
State Tax Credit/Adoption Subsidies
Many states offer a tax credit or subsidy in addition to the federal tax credit. Ask your tax preparer about possible tax credits and/or tax deductions available to you from the state in which you are residing. You may also check with your state tax office.
Dependency Exemption
Adoptive parents may take the same dependency exemption on their income taxes for their adopted children, and children placed with them for adoption but not yet finalized, as they would for their biological children. The exemption reduces their taxable income. The amount of the dependent exemption is adjusted annually to reflect the cost of living. The main point to remember is that families must provide more than half of their children's support to list them as exemptions. Some adopted children come with subsidies, which may provide more than half of their support. For example, if a child receives $5,000 a year in subsidies, the adoptive family must provide $5,001 or more a year to claim the child as an exemption.
Employer Assistance
Adoption Assistance Benefits Program
Many employers will help with costs by reimbursing adoption expenses with a cash benefit of up to $4,000 dollars. If your employer does not offer this benefit, call Adoption and the Workplace at the National Adoption Center (800-862-3678) for materials to guide you in requesting adoption assistance from your employer.
Federal Employees Adoption Benefits
Many non-cash assistance benefits are available to federal employees to make the adoption process easier like extended sick and family leaves to be used for travel, court hearings, and other adoption proceedings.
Military Adoption Reimbursement Program
Military non-recurring subsidy program is a one-time subsidy program for full-time military personnel. Adopting couples or singles can receive up to $2,000 reimbursement on adoption expenses for one child or a maximum amount of $5,000 for siblings or two children whether adopting a healthy infant, a waiting child, or a child from abroad. Travel costs, foreign or domestic, are not covered. Reimbursement is made ONLY after the adoption is finalized and only if the adoption was done through a state adoption agency or a non-profit private agency. Eligible personnel should complete DD Form 2673 (Reimbursement For Adoption Expense). Please see Defense Finances and Accounting Service Instruction 1341 for more information. For more information about adoption for military families you may contact the National Military Family Association at www.nmfa.org
Other Grants
The National Adoption Foundation
National Adoption Program makes quarterly grants ranging from $500 to $4,000 to adopting parents. There is no income requirement. There is a simple one-page application and the only requirement to apply is a home study, or one in progress. Download the application or contact them at (203) 791-3811.
United Way International
United Way International provides assistance for costs of travel for children adopted with illness needing immediate medical attention. Applications are selectively considered and must be supported with a doctor's statement.
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.
Funds 4 Families
Please 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.
A Mothers Love Fundraising
An adoptive mother is helping to plan fundraising events for prospective adoptive parents.
Community Fundraisers
Community Fundraisers Prospective Adoptive Families can address their need for help to their churches and other civic community organizations in their local area.
Child Adoption Funds
Information on creating a tax-exempt entity that can reduce your family's adoption expenses by 15-40%.
Loans
The ABBA Fund
The ABBA Fund
provides financial assistance to Christian couples who need help with the "cash flow crunch" posed by adoption expenses. Adopting couples may request financial assistance in any amount, based upon their needs. The couple will enter into a covenant agreement with The ABBA Fund whereby the couple agrees to reimburse The ABBA Fund in manageable monthly payments. Financial assistance provided by The ABBA Fund is interest free. Couples seeking assistance must complete an application, and assistance will be provided by The ABBA Fund in stages as the adoption process moves along.
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.
Bank Loans
You can try to contact Nations Bank at (800) 448-7061, MBNA (800) 314-5437, First Union Bank in Washington D.C. or any other bank for information if a loan program is available for prospective adoptive families.
The National Adoption Foundation
The National Adoption Foundation has an unsecured low-interest loan program that gives families, whether renters or homeowners, an additional source of needed funds without pledging their homes or other forms of collateral. Apply online or download application from the NAF site or call 1-866-219-5657.