3 Ways You Can Finance Your Adoption Process

Adoption is an exciting step to take as hopeful parents — but it can also be an expensive one. Depending on which kind of adoption you choose to pursue, you could expect to pay thousands of dollars in adoption expenses. Fortunately, there are many different methods of adoption fundraising and financing that can help you through this costly part of your family-building process.

First, know that the professionals at FCCA will always be transparent regarding the fees you can expect to pay as a prospective adoptive parent. You will be aware of any potential costs early in the adoption process to help you make the adoption decision that’s right for you and to help you prepare for any adoption funding that may be necessary moving forward.

With the right preparation and dedication, prospective adoptive parents can afford adoption. Your adoption professionals can suggest different adoption fundraising ideas, and we’ve listed a few of them in this article.

The Federal Adoption Tax Credit

One of the most popular methods of adoption financial assistance available to adoptive parents today is the federal adoption tax credit. The amount of the adoption credit varies each year, but it averages around $13,000 — an amount that parents who have successfully adopted can credit toward their tax obligations.

The federal tax credit is nonrefundable but can be applied for years after an adoption if a family doesn’t use all of the credit in their first filing. It can be used for qualified adoption expenses, such as:

For more information about the IRS adoption credit and how it may apply to your adoption situation, we recommend the resources available on NACAC.org. They offer very informative articles and volunteer assistance to help you take advantage of the adoption financial assistance of that year’s adoption tax credit allowance.

Adoption Grants and Adoption Loans

Another way that prospective adoptive families can better afford their adoption expenses is by applying for adoption grants and adoption loans.

Because it’s common for hopeful parents today to go through various expensive family-building processes, some organizations offer loans and grants for adoption to help people achieve their parenthood dreams.

Every adoption grant and adoption loan will have specific requirements for eligibility; many require a finalized home study as part of the adoption grant application. Beyond those, requirements can be based on the organization offering the grants for adoption. For example, some adoption grants are faith-based with religious requirements, while others require families to meet a certain credit score. Any adoption grant or loan you apply for should be clear about its requirements for eligibility so you can focus your adoption fundraising efforts on the grants and loans most likely to be awarded to you.

Similarly, when you’re applying for an adoption loan, make sure you thoroughly understand the terms of the loan, including interest rates and payback periods. Adoptive parents should only take out loans that they are sure they can pay back in a responsible manner after their adoption is complete.

FCCA has compiled a list of some of the more common adoption grants and adoption loans available to hopeful parents here. We encourage adoptive parents to research fully before applying for and accepting any grants or loans; FCCA is not affiliated with these entities in any way and does not specifically endorse any such program.

Adoption Fundraising and Saving

In addition to the adoption financial assistance available to them, adoptive parents should learn more about adoption fundraising methods and budgeting suggestions to save money for their adoption expenses.

Fundraising is a popular way to raise money for adoption costs, especially because of the ease of raising money online and reaching out to large communities of friends and family. It’s likely that many loved ones have seen hopeful parents struggle through infertility and are willing to help contribute to their adoption fundraising. One of the easiest ways is simply asking for help — for example, instead of usual holiday gifts, adoptive parents can ask for donations to their adoption funding.

Prospective adoptive parents can also create an online fundraiser through a website like YouCaring.com. This kind of online presence allows for a wider reach, making it easier for friends and family to easily donate whatever they can to an adoption fundraising effort. Adoptive parents might also go the more traditional route with yard sales, walk-a-thons, bake sales, car washes and more.

Equally as important as fundraising is taking steps to budget and saving money for future adoption costs. Adoptive parents can make certain lifestyle changes (like eating out less, clipping coupons and creating strict budgets) to save money as they prepare for their adoption process.

For those interested in saving money, finding the right adoption professional and choosing the right adoption process can play a large role in this. For example, foster care adoption is a much cheaper process than international adoption — so adoptive parents looking to save money should consider the differences in each process’s costs. Look for an adoption professional who provides as many services as possible, as well. While the overall cost may seem high, it’s usually more cost-effective than hiring multiple professionals along the way — which can quickly add up.

For more tips on adoption fundraising and affording adoption costs, adoptive parents may wish to join adoptive parent support groups for advice from others who have been through the same process as them. You can also contact our adoption professionals to learn more about how much adoption costs with FCCA and what our fee schedule will look like in your individual situation.

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