Affording Adoption
Even more ideas to help you finance your adoption!
You may be feeling led to adopt, but don’t feel you have adequate funds to do so. If that is the case, don’t give up hope! Research and knowledge are your ally.
What Can You Do?
Federal Tax Credit: On your federal income tax return, you may be able to claim a tax credit of over $10,000 for qualified adoption expenses for both domestic and international adoptions in 2006. For details, visit the IRS web site at: www.irs.ustreas.gov.
State Tax Credit: The State of Michigan also offers a state adoption tax credit for eligible expenses. To find out if your state offers an adoption tax credit, contact your State’s Division of Family Services and State Tax Office.
Private Grant Programs: The National Adoption Foundation offers adoption grants and low-interest loans, both home equity and unsecured, to qualified adoptive families. Visit www.nafadopt.org/NafGrants.htm for more information.
Employer benefits: It is becoming more common for employers to offer adoption benefits such as financial assistance for adoption expenses or paid / unpaid parental leave. Check with your employer to see if you qualify for an employee adoption benefit. If your workplace does not offer adoption benefits, visit www.adoptionfriendlyworkplace.org to find out how you can encourage your employer to begin doing so.
Fundraising: Some families are nervous at the thought of fundraising, but it can be very rewarding! Recruit family, friends, and your church to help organize fundraisers such as:
- community garage sale
- silent auction
- pancake breakfast
- car wash
You can also send support letters to friends and family as another fundraising opportunity.
Loans: Many families take out short-term home equity or adoption loans, which can be paid back with your refund from the Federal and State tax credits. Check with your local bank to see what they offer. Interest rates are often reasonable and the interest is tax deductible.
Frequent Flyer Miles: The agents at AAI’s in-house travel agency, Travel Intrigue, can work with you to see if using frequent flyer mileage on an adoption fare is a possibility. Also, someone you know may be willing to donate frequent flyer miles to help cut your expenses. If you send out fundraising letters, you may want to include that as a request. For more information on adoption travel visit www.travel-intrigue.com.
Plasma: Did you know that you can get paid to donate plasma? Some plasma donation centers will even set up an adoption account for your family so friends can come and donate and their payment will go straight into your account. For more information visit www.biolifeplasma.com.
More than one child: If you are eventually planning to adopt more than one child internationally, adopting more than one child at the same time can save you a large amount of money in the long run. At AAI, the fees for the second child, even if unrelated, are generally much lower, sometimes as little as half. Not every country allows adopting two or more children at one time, but your caseworker can educate you on the requirements. Adopting two children at one time also cuts down on the paperwork and saves you a significant amount of money on travel expenses.
Practicality: Here are some ideas of small things that you can do to save money:
- Sell items that you don’t need by having a garage sell or using internet auction sites
- Cancel cell phones, satellite, or cable
- Clip coupons and shop sales and bargains
- Get a second job and use those earnings for the adoption
- Eat out less
- Begin subtracting money from your paycheck now to learn how to live on a tighter budget and save for the adoption
- Post-pone your vacation and use those funds toward the adoption
- Talk with your health insurance provider about maternity benefits for an adoption
- Refinance your house and / or car
- Recruit your church to assist with adoption expenses
Military personnel benefits: An active duty member of the military may be reimbursed for qualifying adoption expenses. visit naic.acf.hhs.gov/pubs/f_milita.cfm to find out how.
Home based businesses: Some prospective adoptive parents have found success in beginning their own home based businesses such as Pampered Chef, Silpada Jewelry, or Southern Living. These people start the business even before they begin the process and put the money they make toward their adoption. Another idea is to ask a friend who has one of these businesses to host a fundraising presentation for you, inviting different sets of contacts, with all the profits going toward your adoption fund.
Relatives: You may shudder at the thought of asking family members for money, but do not underestimate those who may want to help you successfully complete this adoption. This child is going to be a part of their family, too.
Books: Order the book, You Can Afford Adoption, by Kari Hunt and Ruth Ellen Heaton for adoption financial planning advice and ideas.
More Adoption Funding Information
Learn about different foundations who help families realize their dreams of adoption by visiting our adoption funding web page.
