Financial Programs to Help with Adoption

Financing the adoption of a child can be daunting, but have no fear! There are multiple ways that you can get help! The Adoption Exchange gives a basic guide to adoption assistance:

· Do not finalize an adoption of a child from foster care until you have a subsidy agreement in writing from the child's agency!

· There are government-sponsored subsidies to help cover the costs of an adopted child's physical, medical, therapeutic, and educational needs.

· Most assistance is based on the needs of the adopted child regardless of the family's financial resources; however, those resources will be considered when determining the amount of the subsidy.

· Many children waiting in foster care (children with special needs) are eligible for adoption assistance.

· Assistance can be short-term last until the adopted child reaches maturity (age 18 or 21) depending on the state's requirements.

· Assistance can come from local, state, or federal funds.

· Subsidies may be available to waiting children who do not qualify for Title IV-E benefits. Title IV-E is a federal program that provides financial support to adoptive parents of children with special needs (North American Council on Adoptable Children, “Adoption Assistance Definitions”, 2017).

· An adopting family must apply for the assistance through their county or private agency social worker. It will be processed through the State Department of Human Services. All adoption assistance agreements should be signed before the adoption is finalized.

· Obtaining adoption assistance after finalization is very difficult; however, it is possible to request assistance retroactively and you have the ability to appeal a negative decision.

· The Adoption Exchange urges you to ask your social worker about available subsidies when adopting any child with special physical, mental, medical, and emotional needs.

(The Adoption Exchange, n.d.)

Adoption Loans:

There are Adoption Loans that are offered. For example:

The National Council for Adoption (NCFA) offers a loan program to assist families. When a family obtains a loan through the NFCA program, a line of credit is opened that allows the family to pay adoption costs when the amounts are due.

The National Adoption Foundation (NAF) offers loans, a charitable "bonus" annuity investment program, and life insurance programs. NAF was established by adoptive parents who understand the unmet needs adoptive families have for financial support and advocacy.

America's Christian Credit Union (ACCU) requires credit union membership and asks applicants to sign their statement of faith.

(Bethany Christian Services, n.d.)

Adoption Assistance:

Adoption assistance is given as well and it varies by state, good thing childwelfare.gov has information for each state (Child Welfare Information Gateway, n.d.)! For example in the state of Maryland:

- The eligibility criteria for Maryland funded adoption assistance program:

· State funded adoption assistance is medical benefits, and in appropriate cases a monthly payment, to adoptive families on behalf of eligible adoptive children with special needs as defined below. An eligible child is not eligible for a IV-E monthly adoption assistance, is in the guardianship of a public or private agency or is going to be adopted in a consensual adoption and has a special needs factor:

o Six years to 17 years old

o Race or ethnicity if combined with any of these factors

o Membership in a sibling group

o Physical, mental, or emotional disability or disease

o Recognized high risk of physical or mental disability or disease

o Emotional disturbance

o Physical or mental disease or disability

- The maximum amount a family may receive in non-recurring adoption expenses from Maryland is a lump sum maximum payment up to $2,000.00 per child.

Adoption Grants:

There are also multiple grants that can help as well, for example:

- God's Grace Adoption Ministry - Grants for Christian families that meet income guidelines

- HelpUsAdopt - This organization provides grants for domestic and international adoptions. Families must demonstrate a financial need and have a completed home study to apply.

- Show Hope (Formerly ShaoHannahs Hope) - Steven Curtis Chapman’s organization offers grants. This excellent organization is also devoted to the ministry of orphans around the world through donations and missions opportunities.

- The Childless Mothers Adopt (CMOMA) Gifting Program - The CMomA Gifting Program objective is to give up to twenty $5,000 CMomA Grants per year to eligible new parents adopting older children in need (age 3-17) or special needs children of all ages, both domestically and internationally.

- A Child Waits Foundation - This organization provides grants up to $7,000 and they also provide loans for adoption as well. They provide grants exclusively to families adopting internationally. They typically approve more than half of the qualified families that apply.

(Nightlight Christian Adoption, 2018)

These are just a few of the many grants that are available. More can be found here, here, and here

Adoption Tax Credit:

You can also qualify for an adoption tax credit which helps offset the high cost of adoption and allows more families to afford adoption and provide children with permanent families (Fund Your Adoption, “Tax Credit”, n.d.,) and is one way the U.S. government promotes and supports adoption (Adoption Learning Partners, n.d.). You can claim the federal adoption tax credit if:

· You adopted a child other than a stepchild. You can claim the credit if you adopted from foster care, adopted internationally, adopted a relative’s child, or adopted privately from the US (except your spouse’s child). If you were adopting from the US, you can also claim the credit for expenses for a failed or non-finalized adoption, although you need to wait until a year after you incur the expenses

AND

· At the time of adoption, the child was under 18 (or physically or mentally unable to take care of him or herself).

How much you will benefit from the credit depends on your income and federal income tax liability—which is the amount you are responsible for in federal income taxes. Those who have lower incomes may not be able to use the credit and those with moderate incomes often can’t use the whole amount.

The adoption tax credit is a one-time credit and the amount you can claim depends on the year you finalized your child’s adoption. For example, if you finalized your child(ren)'s adoption in 2018, you could receive a maximum amount of $13,810 per child.

The law also allows adoptive parents whose employers offer an approved adoption assistance program to exclude any reimbursed expenses from their taxable income. Parents cannot claim the expenses for the exclusion and the credit. For example, a family spends $17,000 on their adoption, and the employer reimburses $10,000 through an approved adoption assistance program. The family can exclude the $10,000 from their taxable income, and claim only the remaining $7,000 for the adoption credit.

You can find out how much you can claim from the credit, benefits from the adoption tax credit, how to claim the adoption tax credit and more information here (North American Council on Adoptable Children, “Adoption Tax Credit”, n.d.).

*BONUS* There is an Adoption Tax Credit Course here that will help adoptive families:

· Determine their eligibility for the adoption tax credit

· See how the adoption tax credit works with different types of adoptions and financial situations

· Create a system for tracking and documenting expenses

· Prepare for year-end tax planning and work with a tax professional

(Adoption Learning Partners, n.d.)

Employer Benefits:

The previous paragraph spoke about employer’s offer of an approved adoption assistance program. Many employers offer some form of adoption benefits. These benefits generally fall into 3 categories:

- Information Resources – this may include referrals to licensed adoption agencies, support groups, and related organizations as well as access to an adoption specialist to answer questions about the process or help with special situations like adopting a child with special needs.

- Financial Assistance - this may include a cash payment from the company for adoption-related expenses, often ranging from $1,000 to $15,000. Some companies pay for certain fees or partially reimburse employees for expenses such as agency fees, court costs, legal fees, medical, transportation, foreign adoption fees, and temporary foster care among others. In most cases, benefits are paid after the adoption is finalized, however some employers may pay benefits when the child is placed or as expenses are incurred. Be sure to check with your employer as each adoption benefits policy is different.

- Parental Leave – this is available for all adoptive parents. Federal law requires employers with 50 or more employees to offer up to 12 weeks of unpaid leave upon the birth or adoption of a child. Some employers are very supportive and provide extended and/or paid leave.

Be sure to ask your human resource or personnel department to find out if your company offers adoption benefits.

(Fund Your Adoption, “Employer Benefits”, n.d.)

Here are few companies that are adoption friendly workplace employers as recognized by the Dave Thomas Foundation:

- NVIDIA

- American Express

- Capital One Financial

- T-Mobile

- VIACOM

- JPMorgan

- Comcast

- Domino’s Pizza

- Bank of America

- Kohl’s Corporation

- Cornell University

- New York University

- Baylor University

- 3M Company

- Children’s Mercy Hospitals & Clinics

More can be found here

(Dave Thomas Foundation for Adoption, 2018)

References

The Adoption Exchange. (n.d.). Financial assistance adoption assistance/subsidy. Retrieved from https://www.adoptex.org/the-adoption-journey/financial-assistance/

Adoption Learning Partners. (n.d.). Adoption tax credit. Retrieved from https://www.adoptionlearningpartners.org/catalog/courses/adoption-tax-credit.cfm

Bethany Christian Services. (n.d.). Financing adoption. Retrieved from https://www.bethany.org/financing-adoption

Billadeau, S. (2014, May 6). The 7 Places you should research for adoption grants first. Retrieved from https://adoption.com/the-7-places-you-should-research-for-adoption-grants-first

Child Welfare Information Gateway. (n.d.). Adoption assistance by state. Retrieved from https://www.childwelfare.gov/topics/adoption/adopt-assistance/

Dave Thomas Foundation for Adoption. (2018). 100 best adoption-friendly workplaces list 2018. Retrieved from https://www.davethomasfoundation.org/wp-content/uploads/2018/10/DTFA_2018100BestAdoptionFriendlyWorkplaces.pdf

Fund Your Adoption. (2018). Adoption grants 2018. Retrieved from http://fundyouradoption.tv/adoption-grants/

Fund Your Adoption. (n.d.). Employer adoption benefits. Retrieved from http://fundyouradoption.tv/employer-benefits/

Fund Your Adoption. (n.d.). The 2018 adoption tax credit and what you need to know. Retrieved from http://fundyouradoption.tv/adoption-tax-credit/

Nightlight Christian Adoption. (2018, June 13). Grant programs. Retrieved from https://www.nightlight.org/wp-content/uploads/Grant-Programs-Revised-6-13-18.pdf

North American Council on Adoptable Children. (2017, May 29). Adoption assistance definitions. Retrieved from https://www.nacac.org/help/adoption-assistance/adoption-assistance-us/adoption-assistance-definitions/

North American Council on Adoptable Children. (2019, March 19). Adoption tax credit. Retrieved from https://www.nacac.org/help/adoption-tax-credit/