Are you wondering how you will be able to afford your adoption? Although right now the figures may seem daunting, there are, in fact, many ways that this process can be made affordable. At CT-AFS we believe money should never stand in between you and your new child. Below we have listed several options, which will enable many adoptive families to more easily afford the fees associated with private adoption. In addition to these programs, we encourage you to talk to our staff about the possibilities of making payments in installments. Feel free to contact us so that we can work out a plan that is right for you. You may also wish to get one of the free booklets entitled “How to Make Adoption an Affordable Option” from the National Endowment for Financial Education. Just visit their website at: http://www.nefe.org/adoption to request a copy or call 888-878-3256 and ask for item #508-F. More information about funding sources can be found on this website: www.angelfire.com/journal/adoptionhelp/adopthelp.html.

Federal Tax Credit:
Families who adopt in the U.S. or any other country are eligible. As of April 2009, all adoptive families meeting certain income requirements qualify for a tax credit of $12,125. Families who adopt children from the U.S. or another country may be eligible for the credit. This is a credit and not a deduction; meaning you will be returned the full amount of the credit. You may apply for the credit the year after the adoption is finalized in court. This credit phases out for modified adjusted gross incomes (MAGI) over $182,180. More information is available by typing in the keywords “Qualified Adoption Credit” at the IRS website at www.irs.gov/taxtopics. If you adopt a special needs child in the United States, you will also be able to claim this tax credit in the year the adoption is completed, regardless of whether or not they had qualified adoption expenses. This is a full credit, not a deduction. You may apply the year after the adoption is finalized in court. For more information, call the IRS: 1-800-829-3676 or go to www.jrs.ustreas.gov.
Additional information about the adoption tax credit can be found at: http://www.nacac.org/postadopt/taxcredit.html

Adoption Loans

• National Adoption Foundation Loan Program: This program offers a line of credit of up to $25,000 allowing qualifying families up to 84 months to repay. For more information, contact NAF at (203) 791-3811. (source: http://www.nafadopt.org/NAFPrograms.htm)


• A Child Waits Foundation: A Child Waits is a loan program that provides Money to adoptive parents who would otherwise be unable to afford their adoption. Currently, loans are for five years at 7% with a limit of $7,000 for one child and $10,000 for two children. For more information, call (413) 499-3992 or go to www.achildwaits.org.


• First Union Adoption Loan Program: This program is available to people
  living in CT, DE, FL, GA, MD, NC, NJ, NY, or VA. For this program, call
  (888) 314-5437. Adoption financing is also available through US Bank. Contact
  Tom Shelton at (888) 414-0246. (source: http://precious.org/trinettes-adoption-financing-page.htm)


• Chase New Additions: This program offers adoptive parents a discounted home equity loan. Chase will discount the rate the family qualifies for by one percent for the first six months of the loan period. You must have more than ten percent equity in your home and credit scores above the subprime level to qualify.
  Visit www.chase.com/NewAdditions to learn more.
  
• Your local bank may also have loans available at competitive interest
  rates.


• Wachovia Bank: This bank has favorable rates for adoption loans. Please call (800) 275-3862.


• The Hebrew Free Loan Association provides interest free loans to Jewish adults wanting to adopt internationally or domestically. A single person, or couple, after demonstrating additional need, may borrow up to $10,000 towards the expenses incurred for the adoption of a child. (Further support may be available in special circumstances.) They can be reached at 415-546-9902.


• The Funds4Families Loan Program through American Home Loans offers a diversity of loan programs such as debt consolidation, home equity line of credit, home improvement, and refinancing. Their email address is help@funds4families.com and their phone # 1-800-451-3372.


• MBNA offers unsecured loans specifically designed for adoptive parents. MBNA may be contacted at (888) 786-1116-option 1 and specify adoption.


• Adoption.com offers financing options through an online pre-registration form. See www.adoptionfinancing.com


• Your employer: Many companies offer benefits to adoptive parents in the form of paid leave, unpaid leave, financial reimbursement and resources and referrals. Contact your employer about possibilities of receiving the same benefits associated with a maternity leave as well as the option of starting a grant or loan program for families interested in adoption. A great list of companies who have adoption funding programs can be found at: http://www.adopt.org/datacenter/faces/emplist.html.

Grant Programs

• The National Adoption Foundation: NAF offers grants to families in need, the amount varying from family to family. For more information, call(203) 791-3811. www.nafadopt.org


• The JSW Grant Foundation: The JSW Adoption Grant Foundation is a non-Profit foundation funded by donations and fundraising events. JSW was established to assist potential adoptive parents by providing cash grants to subsidize a portion of the costs of adoption in amounts upwards of $2,000. For more information, call (877) 905-2367 or go to www.jswadopt.org.


• Ours by Grace is a fundraising Christian ministry to help raise money
  and Awareness for the adoption community. Ours by Grace will offer several
  different fundraising events to raise money to distribute as grants to
  families needing financial assistance during their adoption process. All
  grants will be given through the adoptive parents’ agency to ensure
  the proper family gets the funds based on the information received from
  the agency. Home study is submitted with grant application. www.oursbygrace.com.


• Gift of Adoption awards grants to qualified U.S. citizens regardless of marital status, race, creed, or national origin. Average grants awarded range between $2,000-$5,000. You must have your home study finished to apply. www.giftofadoption.org. Phone #877-905-2367


• The Fore Adoption Foundation gives direct grants to adoptive parents
  to help pay for some of the initial financial burdens of adoption (home
  study, legal fees, etc.) or to start up a savings account for the child’s
  future education. See www.foreadoption.com. (480) 563-1155.


• Shaohannah’s Hope (www.shaohannahshope.org) awards financial grants
  to qualified families already in the process of domestic and internation
  adoption. Call (800) 784-5361 for information.


• MBNA (credit card company) offers a limited number of grants. Call 203-791-3811.


• A Child Waits Foundation (www.achildwaits.org) is a nonprofit charitable Foundation formed to reduce the number of children not adopted from International orphanages because prospective adoptive parents lack the Savings to pay for the cost of adoption. Eligibility to receive a loan is based on financial need and each case is judged individually. (866) 999-2445

Personal Loans:
Credit Card Payment: While CT-AFS does not accept credit cards, many credit card companies will issue paper checks to their cardholders upon request. Cardholders should be aware that these checks are often treated as a cash advance and may begin accruing interest immediately. While credit cards are convenient and readily available, this can be a costly method of paying expenses. If you choose to pay by credit card, we suggest that you call the 1-800-number listed on the back of the card to speak with a customer service representative to obtain a paper check and to address the terms and conditions of this type of advance.

Home Equity Loan: There are several advantages to financing major expenditures through a home equity loan versus a credit card. The terms of a home equity loan can be structured to fit the needs of the client; the interest rate is generally lower than a credit card; and the interest paid on a home equity loan is usually tax deductible. Keep in mind, a home equity loan may take 4-6 weeks to process so this option may need to be considered early in the adoption planning. Home equity loans are available from a number of sources including local and national banks, credit unions, and mortgage lenders.

Refinancing a Mortgage: Mortgage lenders often offer a “cash out” option on mortgage loans when the loan-to-value ratio allows. This option may be especially attractive during times when mortgage rates are particularly low. Something to keep in mind on a refinance- clients will generally be responsible for closing costs on a new mortgage loan. Refinances are usually not recommended unless the loan rate is at least 1% lower than your current rate and you plan on remaining in that home for at least 3-5 years.

Borrowing from a 401(K), Pension, or Insurance Policy: Just a couple of considerations here. Clients should weigh the “cost” of lost income revenue with the costs of other finance options. Also, make sure you are aware of any penalties and/or tax consequences that may apply to your situation. Your plan/policy administrator can answer any questions you may have about borrowing from this
source.

• National
  Adoption Information Clearinghouse


• Internal
  Revenue Service (IRS)


• National
  American Council on Adoptable Children (NACAC)


• How
  to Make Adoption an Affordable Option