Affording Adoption:
A comprehensive list of financial resources for
parents in the adoption process or for
those just thinking about it.

Compiled by:
Maura E. Officer
Last revised March 10, 2005
©Maura E. Officer 2005

INTRODUCTION

It was for my own purposes that I started the research that subsequently transformed into the document you are reading. My husband, Jim, and I are in the process of adopting a baby girl from the People’s Republic of China. We had the financial aspect of our adoption worked out before we even began the process … or so we thought. Things change, unforeseen circumstances arise and we soon found ourselves wondering how to come up with the final amount of money necessary to bring our Madelyn home. As I researched the various ways of financing my own adoption, I came across countless stories of people who wanted desperately to adopt a child, but felt they could not afford to do so. It was heartbreaking - heartbreaking to think that these hopeful parents would never know the joy of adopting a child simply because of the cost. And heartbreaking because it meant countless children would remain in orphanages or in the foster care system and never know the joy of a forever family.

My focus turned from researching ways to finance my own adoption, to helping others find ways to finance their adoptions. I began compiling a comprehensive list of financial resources available for all potential adoptive families. Let’s face it: adoption can be expensive. But I learned that there are ways to make it affordable for virtually everyone. I hope that you will be able to use the resources within this document to help finance your adoption. And I hope that you will share it with others to help them finance their adoptions. My intention is to get this information to as many potential adoptive parents as possible, and consequently, to get as many children out of orphanages or the foster care system as possible.

We are working with WASATCH INTERNATIONAL ADOPTION AGENCY for our adoption. Kathy Kaiser, as well as everyone else at Wasatch, has been simply amazing throughout our adoption process. Wasatch came highly recommended to us, and now it is clear why. Wasatch has graciously offered to post this document on their web site at www.wiaa.org with links to each of the web sites referenced below.

What can you do?

If you know of an adoption grant, loan, fundraiser or other cost-cutting idea that is not included here, please e-mail me at Treelo8697@yahoo.com and I will revise this periodically. In the meantime, good luck!

My disclaimer

While I have tried to make this list as comprehensive and concise as possible, I cannot guarantee the accuracy of any information contained herein. Nor can I guarantee that any individual(s) will or will not qualify for any of the loans, grants, or other programs referenced below. I make no warranty as to the legitimacy or legality of any organization or program listed herein. Nothing contained herein is offered as legal or tax advice, and you should consult with a qualified legal and/or tax professional licensed in your state to verify the information contained below and how it may affect you. Phew … I’m a lawyer, what can I say?

TAX RELIEF

Hope for Children Act Tax Credit

Probably the single biggest source of funds towards an adoption is the Federal Hope for Children Act which provides a substantial adoption tax credit. Beginning with tax year 2004, adoptive parents may be eligible to take a tax credit of up to $10,390 for each adopted child. A single adoptive parent can take the credit, but if married, the parents must file jointly in order to take it. Virtually all expenses related to the adoption can be applied such as agency fees, attorney’s fees and travel expenses, including hotels and meals while away from home. The tax credit applies to expenses relating to adopting either a healthy or a special needs child, either domestically or internationally.

There are a couple of noteworthy exceptions to the federal adoption credit. The credit begins to phase out with an adjusted gross income (AGI) of $155,860, which means that at that income level, you will get some credit, but not the full $10,390. With an AGI of $195,860, the credit is no longer available. However, as the vast majority of Americans have an AGI of less than $155,860, the vast majority of Americans will be able to take full advantage of this credit. On the other hand, if the adoptive parents pay less than $10,390 in taxes during the tax year that they are eligible to take the credit, the credit can be applied against their tax liability for a period of up to six years, or until the full $10,390 cap is reached (whichever occurs first).

The biggest disadvantage is that the credit cannot be taken until after the adoption is final. For example, if the adoption is finalized on June 15, 2005, the adoptive parents could take the credit when they file their 2005 taxes in 2006, and all adoption related expenses can be applied at that time, even if they were paid in prior tax years. The practical effect of this is that adoptive parents must have the available funds for the adoption in the first place, as the credit acts as a sort of reimbursement after the expenses are initially paid. Also, note that finality for the purposes of the tax credit does not simply mean taking custody of the child. Particularly for international adoptions, if both parents travel (or if an unmarried person is adopting), in most cases the adoption becomes final for the purposes of the tax credit in the international country. However, in some cases, such as when only one parent of a married couple travels or when the international country grants guardianship to finalize the adoption in the U. S., the adoption does not become final until a decree is issued by a U.S. Court. 1. Consult with your adoption agency and your tax professional for more information on this.

In addition to the tax credit, the IRS also offers an exemption from gross income for qualified adoption expenses that have been reimbursed by an employer.

More information on the federal adoption tax credit and exemption can be found online at http://www.irs.gov/taxtopics/tc607.html or in IRS Publication 968.

Child Tax Credit

In addition to the Hope for Children Act tax credit which is specifically related to adoption expenses, you may also be able to take the federal child tax credit. This is a $1,000 credit for each qualifying child under the age of 17 (it is not limited to adopted children), and is available each and every year while the child qualifies (not just the year the adoption is finalized). In order to take the credit, the child must be claimed as your dependent, must be under the age of 17 by the end of the tax year, must be your son, daughter (adopted or biological) or other qualifying dependent, and must be a U.S. citizen or resident alien.

Like the Hope for Children Act adoption tax credit, the child tax credit phases out with increased income. If both parents file jointly, the credit begins to phase out with an AGI of $110,000. If parents are married but file separately, the credit begins to phase out with an AGI of $55,000. For all others (i.e., single parents), the credit begins to phase out with an AGI of $75,000.

More information on the federal child tax credit can be found online at http://www.irs.gov/newsroom/article/0,,id=106182,00.html or in IRS Publication 972.

State tax relief

Virtually all states offer some type of tax relief including tax credits, exemptions or deductions. Some states offer a tax credit (such as California) while some states offer only an exemption or deduction (such as Massachusetts) for both domestic or international adoption expenses. Unlike the federal tax credit, most states allow adoptive parents to take the applicable credit or exemption for the tax year that the expense is paid, rather than the tax year that the adoption is finalized. For specific information on individual state rules and requirements, see http://www.taxsites.com/state.html or contact your state’s tax agency (often called the Department of Revenue) or your tax professional.

Credits vs. Deductions vs. Exemptions

What is the difference between a tax credit and a tax deduction/exemption? Simply, tax credits reduce the amount of tax due, while deductions and exemptions reduce the amount of income that is taxed. Credits are more valuable than deductions and exemptions.

According to the IRS, a credit is a dollar for dollar reduction in tax. For example, after preparation of taxes, if the tax due to the IRS is $15,000 and you could take advantage of the $10,390 adoption tax credit and the $1,000 child tax credit, the tax due would be only $3,610. Assuming you pay more federal taxes than you owe every year (meaning you usually get a refund), a tax credit means that you will get the amount of the credit as part of your refund.

On the other hand, an exemption is an amount that taxpayers can claim for themselves and their dependents which reduces the amount of income that is taxed. Similarly, deductions also reduce the amount of income that is taxed, but technically are personal and business expenses allowed to be deducted from taxable income pursuant to various IRS or state tax regulations. For example, if your gross income is $50,000 and you are able to take exemptions or deductions in the amount of $10,000, then your adjusted gross income (AGI) would be $40,000. Since you pay taxes based on your AGI, the more exemptions and deductions you can apply, the less tax you will pay.

SUBSIDIES FOR SPECIAL NEEDS CHILDREN

Subsidies (also called adoption assistance payments) are payments made by a state and/or the federal government (under Title IV-E) to parents who adopt a special needs child from the U.S. foster care system or a child that has been voluntarily relinquished to a private adoption agency. Depending on the type and extent of special needs, a child may receive state or federal funds, or a combination of both. The adoption of international children (even those with special needs) do not qualify for these subsidies unless the child was born internationally and subsequently ended up in the U.S. foster care system. Subsidies may be in the form of a non-recurring payment (one time payment for a specific adoption expense) and/or ongoing monthly payments. Each state makes its own determination as to what constitutes special needs, and therefore the children that qualify may vary from state to state. However, generally the factors that are relevant to determining whether a child qualifies for a special needs subsidy are ethnic background, membership in a minority or sibling group, age, or medical conditions such as physical, mental or emotional disabilities. In some states (such as Missouri), simply being in the custody of the Department of Social Services qualifies a child as special needs regardless of the presence or absence of any other factor.

More information on each state’s subsidy program can be found online at http://www.nacac.org/subsidy_stateprofiles.html. In addition, an excellent resource is a study published by the North American Council on Adoptable Children (NACAC) called “Forever Families; Support for Families of Children with Special Needs” which is available online at http://www.nacac.org/pdfs/ForeverFamilies.pdf or can by ordered by calling NACAC’s Adoption Subsidy Resource Center at 1-800-470-6665.

EMPLOYMENT BENEFITS FOR ADOPTION

Active Duty Military

Active duty members of any branch of the U.S. armed forces and the Coast Guard may qualify for reimbursement of adoption expenses of $2,000 per child, up to $5,000 per year. In addition, certain commissioned officers of the Public Health Service and the National Oceanographic and Atmospheric Administration may qualify for these benefits. The benefit of $2,000 per child or $5,000 per year is available for each military family (rather than individual service member) and the benefit does not double if both parents are active duty military. This benefit is available for both domestic and international adoptions, as long as the adoption was arranged through a non-profit adoption agency authorized under state or local law to place children in adoptive homes. Like the federal adoption tax credit, the adoption must be finalized before the adoptive parent can apply for reimbursement.

More information about reimbursement for adoption expenses available to members of the military can be found in the Department of Defense Instruction Number 1341.9 which is available online at http://www.dtic.mil/whs/directives/corres/pdf/i13419wch1_072993/i13419p.pdf and also through the National Military Family Association at http://www.nmfa.org/site/PageServer?pagename=reus_adoptionintro.

Private Employer Adoption Benefits

Many private employers offer adoption benefits in the form of reimbursements for qualified adoption expenses, paid adoption leave and access to adoption resources. The Adoption Friendly Workplace Program, sponsored by the Dave Thomas Foundation for Adoption and the National Adoption Center, has compiled a list of adoption-friendly employers available online at http://www.adoptionfriendlyworkplace.org/employers.asp. In addition, the Program publishes the Adoption Friendly Workplace Guide aimed at encouraging employers to offer adoption benefits, and includes resources for employees to persuade their employers to offer adoption benefits. The guide is free and can be ordered online at http://www.adoptionfriendlyworkplace.org/Order.asp or by calling 1-800-777-4222.

ADOPTION LOANS

There are numerous options for loans in order to finance an adoption. Each type of loan has benefits and disadvantages, and adoptive parents should weigh their options carefully before deciding to apply for any loan.

Home Equity Loans (secured loans)

Adoptive parents who own their home and have available equity, may be able to obtain a home equity loan to pay for their adoption. There are several benefits to taking a home equity loan over other types of loans. First, the interest rate is typically lower than other types of loans and many banks allow borrowers to make interest-only payments for a time. Second, the interest paid back to the lending bank is typically tax deductible (check with your tax professional). And finally, many loan programs operate like a line of credit where the bank will provide you with checks that can be written against the available balance. This type of program is convenient as it allows you to pay for individual adoption expenses as they occur, and make monthly payments only on the balance of the credit line that you have used.

There are, however, disadvantages to using a home equity loan for adoption expenses. Obviously, the amount of the loan will reduce the amount of available equity in your home. Should you have to sell your home before the loan has been repaid, it will reduce your profit, or even result in a loss on the sale depending on how much equity you borrow. Also, even if the monthly payments are interest-only, it will result in an additional monthly payment which should be factored into your budget.

401(k) Loans

Borrowing against a 401(k) retirement plan may be a viable option for adoptive parents. Many companies allow 401(k) account-holders to borrow up to 50% of the account value. The benefit to borrowing against a 401(k) is that adoptive parents are essentially borrowing from themselves. All money paid back (including interest) is paid into the 401(k) account, so in the long-run, there is really no cost to borrow. The disadvantage is that if the account-holder loses his/her job, or voluntarily changes jobs, the unpaid balance of the loan may have to be paid back lump-sum. Thus, adoptive parents should think carefully before borrowing against their 401(k).

Other Adoption Loans (unsecured loans)

Many banks, credit unions, organizations, and even a few private foundations offer loans specifically for adoptions. However, compare rates and terms carefully. Although some online sources claim that certain banks or financial institutions offer “adoption loans,” these loans often are no different than any other unsecured loans offered by the same bank. For example, several adoption-related web sites state that MBNA offers adoption loans or lines of credit. However, a quick call to MBNA confirmed that they do not offer “adoption loans,” but rather, they offer loans or lines of credit which could be used for adoption as well as any other purpose. The loan terms and interest rate are based upon the applicant’s credit history, and are no different if the loan is used for adoption or to remodel a home. This is not to say that the MBNA loans, or other similar loans or lines of credit offered by other banks, are bad; they may be perfect for some families. The point is that adoptive parents should scrutinize the terms of any “adoption loan” to ensure that it is right for their family and financial situation. It is also worth comparing programs between banks and credit unions, because credit unions will sometimes approve loans easier than banks. This may prove helpful if credit history is an issue.

In addition to loans and lines of credit offered by most banks and credit unions, there are organizations that offer adoption-specific loans only to people who provide documentation of the pending adoption and who otherwise qualify under the terms of the loan program. These adoption loans typically have lower interest rates (sometimes zero interest), as well as shorter repayment terms, than standard loans or lines of credit. However, in order for these organizations to protect their investment (in the unfortunate event the adoption falls through), they usually fund the loan at the very end of the adoption process, or just before travel for international adoptions. Thus, these loans generally will be useful only to complete the adoption process and pay the final few expenses, rather than to start the process. Some adoption loan programs are very broad and can be used for almost any type of adoption, while some programs are very specific and can be used only for limited types of adoptions. Information on a variety of loan programs is contained below, although other banks or loan programs may offer better terms or interest rates so it is worth comparing programs carefully.

National Loan Programs

A CHILD WAITS FOUNDATION
www.achildwaits.org
1136 Barker Road
Pittsfield, MA 01201
1-866-999-2445
A Child Waits is a non-profit foundation that provides low-interest loans to families who have exhausted all of their financial options and could not adopt without their help. Eligibility is based upon both financial need and credit history, and currently the Foundation funds only international adoptions. The foundation will loan $10,000 or up to 50% of the cost of the adoption, whichever is less, with a repayment term of no more than five years. Applicants must be working with an adoption agency licensed in the state of operation, and if approved, funds will be dispersed just prior to finalization of the international adoption. The adoptive parents must provide the initial funds to adopt.

ADOPTION NETWORK LAW CENTER
www.adoptionnetwork.com
1-800-FOR-ADOPT
Adoption Network Law Center makes available credit based adoption loans up to $50,000 with repayment terms from 24 to 84 months. Interest rates start at 9.99% and they offer same-day decisions on loan applications. You can apply online at: http://adoptionnetwork.com/adoptiveparents/credit-based-adoption-loans.shtmlbut note that you will be redirected to http://www.apfusa.com/adoption.htm, APFUSA (a loan processing company), who will review your application and submit it to appropriate banks; the loan is not actually funded by the Adoption Network Law Center. Lifetime Adoption Facilitation Center (www.lifetimeadoption.com) also offers loans through APFUSA.

IVF FINANCING
www.ivffinance.com
P.O. Box 2374
Ponte Vedra Beach, FL 32004
1-888-285-9871
IVF Financing is a loan program offered through Medical Business Solutions. Medical Business Solutions offers unsecured adoption loans, as well as home equity loans. Although the IVF program was originally tailored to finance infertility and other medical treatments, they have expanded to include adoption. Medical Business Solutions is a general lending company, so they have a wide variety of home equity loan options, including programs for people with credit problems. You can apply online at https://www.ivffinance.com/localivffsignup.html.

MBNA
www.mbna.com
1-888-844-3775
MBNA Gold Option is a term line of credit up to $25,000 with repayment terms from 36 to 72 months. The variable interest rate is based upon credit history and will range from a minimum of 9.24% to a high of 25.24%. 2.
Apply online: https://www1.fni-stl.com/cgi-bin/mbnaloannet.pl?form&track=mbnago05
Other banks offer similar lines of credit.

NATIONAL ADOPTION FOUNDATION (NAF)
www.nafadopt.org
100 Mill Plain Road
Danbury, CT 06811
203-791-3811
The NAF offers the Adoption Assistance Loan through American General Financial Services. Like the MBNA loan, this is actually a general credit-based loan that can be used for any purpose once the funds are dispersed to you. You can apply online at http://www.nafadopt.org/loanprograms.htmand you will be redirected to the American General Financial Services website.

OXFORD ADOPTION FOUNDATION
www.oxfordadoption.com
4309 Crayton Road
Naples, FL 34103
239-430-6240
Oxford offers no interest or low interest loans for both domestic and international adoptions, based upon financial need. Oxford will generally lend up to $5,000 per child, up to a maximum of $10,000. The typical loan terms are 0% interest for the first three years, 3% interest for the next three years, and 6% interest for the final three years, for a maximum loan term of nine years. Adoptive parents should try to obtain funds from all other sources before contacting Oxford, as they lend only the final amount of money necessary to complete the adoption where all other financial resources have been exhausted.

Local Programs

In addition to the above loan programs, there are many regional or local programs that adoptive parents can look into. The programs listed below are only a few of the regional/local loan programs available. Adoptive parents should contact their bank, church and community organizations to determine what may be available in their area.

HEBREW FREE LOAN ASSOCIATION
www.hflasf.org
131 Steuart Street, Suite 425
San Francisco, CA 94105
415-546-9902
Offers no interest loans to people of the Jewish faith in Northern California. They will lend up to $10,000 for either domestic or international adoptions, and they require 2 – 4 co-signers depending upon the amount of the loan.

JEWISH FREE LOAN ASSOCIATION
www.jfla.org
6505 Wilshire Blvd., Suite 715
Los Angeles, CA 90048
323-761-8830
Offers no interest loans to people of the Jewish faith in the Los Angeles area, including the Lerner Family Adoption and Fertility Assistance Loan Fund.

Credit Cards

Some adoptive parents may consider putting adoption costs on a credit card, although this is not usually an ideal option as the interest rates are generally higher than other types of loans (such as home equity loans). Some adoption agencies have even begun accepting credit cards as a payment option. Because credit card rates and terms vary widely, people considering this option should compare cards carefully. There are web sites (such as www.bankcardfinder.com) that allow you to compare credit card rates, terms and offers online.

NATIONAL ADOPTION FOUNDATION
www.nafadopt.org
100 Mill Plain Road
Danbury, CT 06811
203-791-3811
The NAF offers a Visa card through U.S. Bank with relatively competitive terms including 0% interest for six months for those who qualify. A portion of all purchases will go to the NAF to support efforts to make adoption more affordable. You can obtain more information and apply online at http://www.nafadopt.org/NAFPrograms.htm#loans.

ADOPTION GRANTS

There are several organizations that offer grants to help defray the costs of adoption. For those parents that qualify, grants are an excellent way of financing an adoption because the money does not have to be repaid. Grants are typically awarded based upon financial need or personal hardship, although each grant has its own eligibility requirements. Some grants are very broad in scope and are available for virtually all types of adoptions, while other grants are very limited in scope. Note that the amount of any grant may have to be reported as income to the recipients. However, if the grant is awarded in the tax year that the adoption is finalized, the federal tax credit will likely offset any tax liability related to the grant. Adoptive parents who are awarded a grant should consult with both the grant-awarding organization as well as a tax professional as to the potential tax implications.

Some adoption agencies offer their own grants towards fees associated with their service. Some of these grants are available to adoptive parents based upon financial need while others are limited to adoption of special needs children. Like all grants and loans, adoptive parents should compare adoption agency fees and grants carefully. At least one watch-dog organization reports that some agencies have artificially inflated fees which they then reduce by awarding “grants,” although parents could simply achieve the same costs by using a different agency without a grant. However, this does not apply to all agencies as many genuinely strive to help make adoption affordable.

What you will find below are organizations (both private foundations and non-profit organizations) that will provide grants to qualified adoptive parents. What you will not find below are organizations associated with an individual adoption agency, or grants available only to people who use a specific adoption agency’s services.

Grants Open to All Adoptive Parents

GIFT OF ADOPTION FUND
www.giftofadoption.org
101 East Pier Street, 1st Floor
Port Washington, WI 53074
1-877-905-2367
Gift of Adoption provides grants, usually between $2,000 - $5,000, to adoptive parents for both domestic and international adoptions. Applicants must have an approved home study before applying for a grant. You can apply online at https://www.giftofadoption.org/Grant.asp using a credit/debit card to pay the $20 application fee (e-mail Gift of Adoption for to apply for a grant without a credit/debit card). Grants are awarded based upon financial need and/or extraordinary hardship on the part of the adoptive parents or the child.

NATIONAL ADOPTION FOUNDATION
www.nafadopt.org
100 Mill Plain Road
Danbury, CT 06811
203-791-3811
The NAF offers grants to qualified adoptive parents for any type of legal adoption, including private adoptions facilitated by an attorney. The grants typically range from $500 to $2,500. Although there is no income requirement to apply, the NAF is inundated with grant requests so funds will be awarded to the neediest families first, depending on the funds available at the time of the application. More information can be found at http://www.nafadopt.org/NafGrants.htm.

OPEN ARMS CHILDRENS CHARITIES
www.open-arms.org
2536 Old Highway 94 South, Suite 118
St. Charles, MO 63303
636-922-7110
Open Arms awards grants to adoptive families on a quarterly basis: March 15, June 15, September 15 and December 15 of each year. The grants are open to all adoptive parents with an approved home study, regardless of whether they are adopting domestically or internationally. The amount of the award depends upon the number of applications received, as well as donations and fundraisers. There is a $10 application fee.

PROMISE THE CHILDREN
www.promisethechildren.org
11939 Manchester Road, Suite 136
St. Louis, MO 63131
Promise the Children provides grants to adoptive parents on a non-discriminatory basis, as they believe as many children as possible should be united with loving parents. However, they will only provide grants to qualified applicants working with adoption agencies which they have determined to comply with their non-discriminatory policies. Contact Promise the Children to determine if your agency has been approved. Applicants must have a completed home study, and for international adoptions, I 171H approval from USCIS. There is a $15 application fee.

Grants Limited by Type of Adoption or Who Can Apply

A CHILD’S DESIRE
www.achildsdesire.org
1735 ½ Washington Street
Natchitoches, LA 71457
318-354-1229
A Child’s Desire offers grants to parents adopting hard to place children, special needs children, and children over the age of eight. A Child’s Desire is staffed entirely by volunteers so that 100% of donations go to orphans in need.

BRITTANY’S HOPE FOUNDATION
www.brittanyshope.org
1000 North Market Street
Elizabethtown, PA 17022
717-367-9614
Brittany’s Hope helps parents afford the adoption of special needs children, older children, and sibling groups. Rather than providing a grant directly to the adoptive parents, however, Brittany’s Hope places money on specific waiting children referred to them by placement agencies in an effort to get potential families interested in the child and make the adoption more affordable.

CAROLINE’S PROMISE
www.carolinespromise4u.org
1950 Beeson Road
Kernersville, NC 27284
336-993-9046
Caroline’s Promise provides grants of $3,000 - $5,000 to Christian families to help with the cost of both international and domestic adoption. Currently, this program is open only to residents of North Carolina, but they hope to expand to offer grants through the country in the future.

CHANCES BY CHOICE
www.chancesbychoice.org
708-524-4673
Chances by Choice provides grants, whenever funds are available, to people who adopt an internationally born child with HIV or AIDS. While they are not a placement agency, they will assist in identifying HIV/AIDS positive children available for adoption and will link the prospective parents with an agency for placement. They will also provide education and post-adoption support to the family.

CHINA CARE FOUNDATION
http://chinacare.org/
P.O. Box 607
Westport, CT 06881
203-227-3655
China Care foundation provides grants, loans, or a combination of both, to aid parents in adopting a special needs or older child from China. The typical financial aid award is between $1,000 - $4,000 and is based upon financial need.

FORE FAMILY FOUNDATION
www.foreadoption.com
8141 East Overlook Drive
Scottsdale, AZ 85255
480-563-1155
This is a private foundation (not a non-profit organization) started by PGA star, Kirk Triplett and his wife Cathi, to help adoptive parents overcome the financial barriers to adoption. The foundation awards grants of $2,500 towards adoptive parents’ attorney or agency fees, towards birthmother expenses, or to be placed in an educational fund for a qualified adopted child. The grants are limited to domestic adoptions of children in the foster care system, children with special needs, older children, or hard to place children.

GOD’S GRACE ADOPTION MINISTRY
www.ggam.org
P.O. Box 4
Modesto, CA 95353
209-572-4539
GGAM provides grants and assistance with fundraising to Christian families to help them overcome the financial burdens of adoption.

HIS KIDS TOO!
www.hiskidstoo.org
PMB# 180
3491 Thomasville Road
Tallahassee, FL 32309
850-529-5437
His Kids Too! provides grants of $2,000 for one child or up to $4,000 for two children to Christian families adopting internationally. They also have an Adoption Bank Program where family, friends and co-workers can make donations towards adoption expenses. His Kids Too! has a division called A Heart of Mercy (www.aheartofmercy.net) which provides humanitarian aid to orphans in Kazakhstan as well as financial assistance to people adopting from Kazakhstan.

HOME FOR GOOD FOUNDATION
www.hfgf.org
697 E. Intervale Road
Grants Pass, OR 97527
541-479-5926
Home for Good offers grants to help fund the adoption of special needs children, older children, sibling groups (in an effort to keep the group together) and children who are otherwise hard to place and may never be adopted without grant assistance. Priority is given to applicants who demonstrate that they actively participate in their own fundraising, and are continuing to make every effort to raise funds from other sources. Although Home for Good does provide grants, they will give priority consideration to applicants who seek a no interest loan over an outright grant.

IBSEN ADOPTION NETWORK
www.angelfire.com/home/ibsen
2730 French Road NW
Olympia, WA 98502
Ibsen is a Christian organization that provides grants up to $1,000 to families adopting waiting children, special needs children or hard to place children. Currently, this program is open only to residents of Washington State although they hope to expand to offer grants nationally in the future.

LIVES OUT OF CHINA (LOOC)
www.looc.org
1187 Coast Village Road, Suite 1-503
Santa Barbara, CA 93108
310-388-1247
LOOC provides grants to families adopting abandoned baby girls from China. Their mission is to get as many of these baby girls out of orphanages as possible, and will provide grants to people who can demonstrate that they would make superior parents, but who otherwise may not be able to afford the adoption process.

MIRACLE MOMS
www.miraclemoms.org
P.O. Box 42139
Cincinnati, OH 45242
513-521-6629
Miracle Moms is a non-profit organization started by an infertility support group to aid women who have experienced either birth or adoption after infertility. Miracle Moms provides adoption grants to married couples who have been medically diagnosed as unable to conceive a child. At this time grants are only available to U.S. citizens living in Ohio, Kentucky and Indiana, and preference is given to those applicants demonstrating financial need. Miracle Moms hopes to make more people aware of their organization so that they will open regional chapters and hopefully make all of Miracle Moms’ programs and services available nationwide (including adoption grants).

ONE WORLD ADOPTION FUND
www.owaf.org
35 Woodmer Lane
Battle Creek, MO 49017
One World makes a limited number of grants to people adopting internationally only. This is a small organization which spends the year fundraising and then awards a few grants at the end of each year (around November). The number and size of grants depends upon the success of fundraising that year. Check their website frequently, and when they are prepared to award grants, they will make their application available online at http://www.owaf.org/application_form.htm.

SEA OF FACES FOUNDATION
www.seaoffaces.org
10621 NW 61st Terrace
Alachua, FL 32615
Sea of Faces is a non-profit organization recently established in September of 2004. They are currently fundraising, but soon will be offering grants to Christian married couples adopting internationally from a developing country. The grants will be available to qualified applicants with a completed home study and accepted referral of a child.

SHAOHANNA’S HOPE
www.shaohannahshope.org/about.cfm
6723 Whittier Ave, Suite 306
McLean, VA 22101
1-800-784-5361
Shaohanna’s Hope provides grants to Christians adopting through a non-profit adoption agency. Funding priority will be given to families experiencing the greatest need, and those who are receiving financial help from their church. You can apply online at http://members.shaohannahshope.org/site/PageServer?pagename=ado_applicationstart.

SHEPHERD’S COOK MINISTRIES (formerly Ours By Grace)
www.thesheperdscrook.org
P.O. Box 773
West Chester, OH 45071
513-844-8873
The Shepherd’s Crook provides financial assistance to families who adopt any of the waiting children listed on their web site. Information about the waiting children can be found at http://www.theshepherdscrook.org/waiting_children.html. The Shepherd’s Crook is not an adoption agency and does not endorse any particular adoption agency, but works to make people aware of the waiting children around the world. The Shepherd’s Crook will put potential adoptive parents in touch with the adoption agency listing the child of interest.

TMG FOUNDATION
www.tmgfoundation.org
Attn: Orphan/Adoption Ministry
P.O. Box 40
202 North Ford Street
Gridley, IL 61744
TMG Provides a “matching grant” program geared for married Christian couples seeking to adopt a child internationally. The awarding of a grant is based upon religious criteria, financial need of the family, referral and support from local church and available funds at the time of application. TMG facilitates fundraising, and TMG will then make a matching grant up to a pre-determined amount.

Questionable Grant Sources

The grants below are listed as “questionable” for a variety of reasons. Some of these organizations are listed on numerous web sites as providing grants for adoption expenses, but do not have web sites to verify the information. Some of these organizations do have web sites, but for one reason or another, I have been unable to confirm that the organization still exists, or is still awarding grants. If/when I am able to verify that any of these organizations do provide grants, I will update the information and move them to the applicable section above.

A CHANCE FOR A CHILA
www.i-a-a.org/chanceforachild.htm
P.O. Box 194
Rockvale, TN 37153
It is not clear whether this program is currently in operation. This is a sub-page on the Inter-National Adoption Alliance web site. The web site indicates that they offer grants to parents adopting both domestically and internationally. However, the link to apply for a grant is non-functional.

BOATNER FAMILY FOUNDATION
P.O. Box 132272
The Woodlands, TX 77393
Information found on several web sites indicates that this Foundation offers grants from $1,000 to $10,000 to help defray the cost of adoption. However, this Foundation does not appear to have its own web site and, to date, I have not been able to confirm the accuracy of this information.

CHILDREN OF THE WORLD
27E Hillvale Road
Syosset, NY 11791
Information found on several web sites indicates that this Foundation offers grants or some type of financial assistance to adoptive parents. However, there does not appear to be a web site and, to date, I have not been able to confirm the accuracy of this information.

LOVE KNOWS NO BORDERS
500B Monroe Turnpike
P.O. Box 350
Monroe, CT 06468
Information found on several web sites indicates that this Foundation offers grants or some type of financial assistance to adoptive parents. However, the link provided to their web site (www.loveknowsnoborders.org) leads to a search engine which may mean the organization is no longer operative. To date, I have not been able to confirm whether the organization is operating at this time.

ONE FAMILY FOUNDATION / GADBOIS FAMILY FUND
www.onefamilyfoundation.org
P.O. Box 310
Charlton, MA 01507
This organization has in the past offered adoption grants and loans. Their web site says that their grant program is closed for 2004. It is not clear whether they intend to re-open their grant program in 2005 or at any time in the future.

FUNDRAISERS AND FUNDRAISING ACCOUNTS

Because of the costs associated with adopting a child, some organizations have found creative solutions to help raise money for adoption expenses. Some organizations focus on helping adoptive parents raise money while others provide a mechanism for donations to be made. Several such organizations are listed below.

Fundraising Accounts

CHILD ADOPTION FUNDS *
www.childadoptionfunds.org
481-451-1416
This is a foundation under the umbrella of the National Heritage Foundation (www.nhf.org). Their web sites states that they will set up a foundation account for adoptive parents so that others (family, friends, co-workers, etc…) can make tax deductible donations to the foundation. The proceeds donated to the foundation can then be used to pay for adoption expenses. Child Adoption Funds is not an adoption agency and requires that adoptive parents be working with an adoption agency before the foundation account can be established.

* Please note that while this organization seems legitimate and sincere, the donations made to your foundation account may not actually be tax deductible. Other web sites which previously offered tax deductible donation accounts have ceased doing so because IRS law does not allow tax deductions for donations made to a charity that benefits a specific person. While there does not appear to be a problem with the account itself or with receiving donations, those deductions may not be tax deductible to the donor, and technically may be taxable as income to the recipient. Check with an attorney and/or a tax professional before opening a foundation account with Child Adoption Funds or with any organization offering a similar service.

HIS KIDS TOO!
www.hiskidstoo.org
PMB# 180
3491 Thomasville Road
Tallahassee, FL 32309
850-529-5437
His Kids Too! has a program called the Adoption Bank where people can donate money towards your adoption expenses and they will pay the expenses on your behalf. Recognizing the tax deductibility problem referenced above, His Kids Too! no longer offers tax deductions for donations made to your Adoption Bank account. They also take a 5% service fee from the total donations made to your account.

KINGDOM KIDS ADOPTION MINISTRIES *
www.kkadoption.com
1417 North Lincoln
Spokane, WA 99201
509-465-3520
Kingdom Kids offers a program similar to Child Adoption Funds (above), but has endeavored to avoid the potential tax deductibility problems referenced above. Rather than set up an individual foundation account for your benefit, you solicit donations and Kingdom Kids accepts those donations to their organization; they state the donations are tax deductible. Kingdom Kids then awards a grant (or multiple grants), not to exceed the total amount of donations received in response to your solicitations, payable directly to your adoption agency for verifiable adoption expenses. Specific information on how this program works can be found online at http://www.kkadoption.com/Fundraising.aspxand you are encouraged to review the program guidelines carefully. One point worth noting is that if your adoption falls through for any reason after donations have been made, the donated funds do not belong to you and will be redistributed to other families to help with their adoption expenses.

* Kingdom Kids believes that they have found a way to circumvent the IRS regulations prohibiting tax deductions for donations made to a charity that benefits a specific person. However, I cannot guarantee that this is actually the case. Check with an attorney and/or a tax professional before getting involved with Kingdom Kids’ fundraising program or with any organization offering a similar service.

Fundraising Programs

A CHILD’S DESIRE
www.achildsdesire.org
1735 ½ Washington Street
Natchitoches, LA 71457
318-354-1229
A Child’s Desire offers two fundraising programs for adoptive families: selling magazine subscriptions and selling child photo ID cards. The proceeds can be used for adoption expenses.

A MOTHER’S LOVE FUNDRAISING
www.amotherslovefundraising.com
3 Blueberry Lane
Andover, NJ 07821
A Mother’s Love was started by a mother who experienced fertility problems and subsequently adopted a child. She is keenly aware of the costs of adopting and sought a way to help ease the financial burden. A Mother’s Love offers several fundraiser programs, including some common ones such as Tupperware, Avon and Pampered Chef. There is also A Mother’s Love gift catalog containing over 3,000 items. All orders are forwarded to A Mother’s Love for processing and they will forward a profit check to you.

ANNA BEARS ADOPTION FUNDRAISING
http://annabears0.tripod.com/
919-785-3837
Anna Bears was started by a family trying to finance their adoption. They began selling teddy bears and putting the profits towards their adoption expenses. They have branched out to help other families fundraise for their own adoptions, and now offer T-shirts as well as teddy bears.

A PARENT AT LAST ADOPTION FUNDRAISING
www.aparentatlast.com
678-755-8973
A Parent at Last was founded by an adoptive parent who has compiled a list of over 200 fundraising ideas, and will provide support throughout the fundraising process. There are different fundraisers available depending upon your geographic location, family make-up and adoption time-line.

GOOSEBERRY PATCH
www.gooseberrypatch.com
600 London Road
P.O. Box 190
Delaware, OH 43015
1-877-854-7400
Gooseberry Patch is an online gift store with a country flair. While not specifically tailored to adoptive parents, Gooseberry Patch offers a fundraising program where they state you can earn up to 58% profit on the products you sell. The fundraising catalog includes cookbooks, calendars and other gift items, and there are no minimum order requirements. More information on the fundraising program can be found at http://www2.gooseberrypatch.com/gooseberry/database.nsf/v.pages/f.fundraisingmain.

HOPE FOR A FAMILY
www.hopeforafamily.org
5025 Sheffield Place Drive
Kernersville, NC 27284
Hope for a Family was fundraiser organized by a family in 2000 to help afford their own adoption. They published a cookbook called “Granny’s Gathering Cookbook” which they will sell in bulk to adoptive parents to then re-sell at a 50% profit. They also will provide you with other fundraising ideas as well as flyers to help market the cookbook to local businesses.

INVISIBLE REBATE PROGRAM
www.invisiblerebateprogram.com
877-473-0144
This is a clever fundraising program started by an adoptive father who was touched by his Belarus adoption experience. The program works by setting each family up with their own web-site at no cost. You then solicit people to visit your web site and purchase from three personal care, nutrition and skin care product lines supplied by the program. On a monthly basis, you will receive a check for 40% of the sales originating on your web site (excluding shipping & handling). There are no up-front costs and your work is limited to getting people to visit the web site and purchase products.

Independent Fundraising

Aside from web-based fundraisers organized by others, I have read of many adoptive parents who have come up with their own creative fundraising ideas. Several are listed below.

Bake Sales
Some people have arranged bake sales, often in conjunction with their local church.

Fundraising Dinners or Breakfasts
For those with a culinary flair, some parents have organized dinners or breakfasts which people buy “tickets” to attend. I have read of everything from backyard barbecues to elegant multi-course gourmet dinners. Some people have even been successful in recruiting restaurants or food markets to donate the food necessary for the event so that the out of pocket cost to hold the event is minimal and the entire “ticket” price can be put towards adoption expenses.

Church Benefits
Churches are wonderful places to fundraise. Some people have used their church hall for free or for a nominal fee to hold a fundraiser. I have read of churches donating hot dogs and hamburgers for a “pay to attend” cook-out, with all proceeds going to the adoptive family. I have also read of pancake breakfasts where church members volunteer to bring pancake mix, coffee, and other supplies and then volunteer to do the cooking – again, all proceeds benefiting the adoptive family.

Car Washes
Hey, it works for high school cheerleaders and football teams. Get a bunch of volunteers together and get washing.

Raffles
Many people have had success with raffles, usually in conjunction with a local business. Find an item to raffle (or have one donated if you can), and talk to local businesses about selling tickets for the raffle. Make sure it is clear that the raffle will help with adoption expenses.

Craft Sales
If you are crafty, make some crafts and start selling them. If you aren’t crafty, but know someone who is, ask them to help you. I have read of people having success at this by offering their crafts at church fairs or at local craft fairs.

DISCOUNTED ADOPTION AIRFARE

Several travel agencies and airlines have recognized the unique issues faced by parents traveling to adopt a child. For example, often adoptive parents do not know when they will be traveling until the last minute. This can be problematic because many airlines’ fares increase significantly when purchased inside of 21 days. Sometimes, adoption travel plans can change unexpectedly, and usually the least expensive tickets carry penalties for cancellations and changes. Also, bringing a child home obviously means that at least one one-way ticket will have to be purchased. Although you would expect one-way tickets to cost less than round-trip tickets, they often are more expensive, sometimes more than double the cost of a round-trip ticket. However, there are ways of making adoption travel affordable, and some of those ways are set forth below.

Airline Programs

Through my research I discovered references to several airlines that allegedly offered adoption fares. However, despite numerous calls, I have only been able to confirm adoption fares offered by the following airlines. Other airlines indicated that they offer fares with fewer restrictions and no change/cancellation penalties, but do not classify those fares specifically as adoption fares. The unrestricted fares are usually more expensive than standard economy fares.

NORTHWEST AIRLINES and KLM DUTCH AIRLINES
www.nwa.com
1-800-322-4162
Northwest Airlines and their partner KLM Dutch Airlines (both owned by the same parent company) offer “Special Delivery” fares from the U.S. to over 100 international destinations in Asia, Africa, Europe, India and the Middle East. These fares offer a lot of flexibility (such as stopovers and open returns) and there are no penalties for cancellations or changes. Also, no advanced purchase is required. These fares are open to the adoptive parents and their children. In order to qualify, you must provide specific documentation to verify your adoption. More information can be found at http://www.nwa.com/features/adopt.shtml.

UNITED AIRLINES and LUFTHANSA AIRLINES
www.united.com
1-800-538-2929
United and Lufthansa (both owned by the same parent company) offer special international adoption fares for travel from the U.S. to Asia, Africa, Australia, Europe, the Middle East, Central and South America. These fares are open to the adoptive parents, the adoptive child as well as friends or family members assisting with the adoption process. In order to qualify, you must provide specific documentation to verify your adoption. More information can be found at http://www.united.com/page/article/0,6722,50912,00.html.

Are these adoption fares really cheaper? Maybe not, so it is worth comparing fares carefully. I called both Northwest/KLM and United/Lufthansa and did hypothetical comparisons of regular fares versus adoption fares. The results were surprising.

For Northwest, my hypothetical reservations were for a Chinese adoption. I inquired about a flight from New York City (JFK International Airport) to Beijing, China with an “open jaw” 3. return from Guangzhou to New York City (JFK). This is a common itinerary for Chinese adoptions. Under the “Special Delivery” program, the round-trip fare for an adult was $1,553.00 and the one-way fare for the adopted child was $776.50. Assuming two parents travel, the total cost for two adult round-trip tickets and one one-way ticket would be $3,882.50. The lowest fare available on the exact same dates and on the exact same flights was $846.00 per adult round-trip and $870.92 4. for one one-way ticket. Again assuming that two parents travel, the total cost for two adult round-trip tickets and one one-way ticket would be $2,562.92. The total savings by booking regular economy airfare and not using the adoption airfare was $1,319.58.

For United, my hypothetical reservations were for a Romanian adoption. I checked round-trip fares from Los Angeles to Bucharest, Romania. Under the adoption program, the round-trip adult fare was $2,668.84 per person and the one-way fare for the adopted child was $1,679.05. Assuming two parents travel, the total cost for two adult round-trip tickets and one one-way ticket under the adoption fare would be $7,015.93. The lowest fare available on the same dates was $1158.29 per adult round-trip and $993.82 for one one-way ticket. These fares were not offered by United/Lufthansa, but by another major airline. Again assuming that two parents travel, the total cost for two adult round-trip tickets and one one-way ticket would be $3,310.40. The total savings by booking regular economy airfare and not using the adoption airfare was $3,705.50.

Of course, the lower fares carry penalties if you must make changes after purchasing the ticket. However, given that the typical change fee is $75.00 per ticket, per change, it is unlikely that you would incur change fees substantial enough to warrant purchasing the adoption fare. Also, the price of airline tickets can literally change daily. The prices referenced above were the fares offered by the airline when I called their reservation center and available online on the date I inquired. The prices will differ and are not intended to be representative of what airfare should/would cost between these airports. There may be ways to get fares lower than those referenced above, so read on. But before buying any airline tickets, it is worth checking fares online so you have an idea of what the tickets should cost for the dates you are traveling. Some good sites to check airfares online are listed below.

EXPEDIA
www.expedia.com
1-800-EXPEDIA

ORBITZ
www.orbitz.com
1-888-656-4546

TRAVELOCITY
www.travelocity.com
1-888-709-5983

Travel Agencies specializing in adoption travel

AFC TRAVEL
www.afctravel.com
350 West Burnsville Parkway, Suite 225
Burnsville, MN 55337
1-800-599-2925
AFC is a travel agency arranging group travel, as well as individual travel for special situations such as religious missions, study abroad programs and international adoptions. They work with 20 airlines to offer prices that they say are 10% - 50% off of the published fares. However, double check the fares as they admitted that sometimes an airline will have a major sale with fares lower than AFC could offer.

FEDERAL TRAVEL AND CRUISES
www.federaltravel.com
3320 North Federal Highway, Suite 1
Lighthouse Point, FL 33064
1-800-551-8666
Federal Travel is a full service travel agency that offers special services for adoption travel. They work with airlines to provide discounted airfares to destinations within the U.S., to Central and South America, Russia, Europe, China, Korea, India, and elsewhere. They are often able to waive many of the restrictions attached to the lowest fares available from the airlines.

FELLOWSHIP TRAVEL INTERNATIONAL
www.fellowship.com
P.O. Box 15360
Richmond, VA 23227
1-800-235-9384
Fellowship Travel specializes in making travel arrangements for non-profit organizations, students and those working with humanitarian relief programs. They also assist adoptive parents in making travel arrangement. Currently, they work only with British Airways and can usually offer airfares lower than those otherwise available from British Airways directly. However, the obvious limitation is that these discounted fares are only available to destinations where British Airways flies.

GO TO RUSSIA
www.gotorussia.com
309 Peters Street, Suite A
Atlanta, GA 30313
1-888-263-0023
Go to Russia is a travel agency specializing in travel and tours to Russia and Eastern Europe. They also have a program for parents adopting from Russia and former Eastern Block countries where they can provide discounted airfare and hotel reservations.

LOTUS TRAVEL, INC.
www.lotustours.net
780 6th Street South
Kirkland, WA 98033
1-800-956-8873
Lotus Travel is a tour operator specializing in packages to China and Southeast Asia. As such, they are a consolidator of 8 international airlines and can offer discounted airfares. They have extensive experience making travel arrangements for adoptive parents, and in fact, since 2002 have had about 40% of the market share in adoption travel. They can make arrangements for families traveling to complete adoptions in Cambodia, Vietnam, China, Korea, India, Mongolia, Thailand and other Southeast Asian countries.

SERVANT TRAVEL
www.servanttravel.com
1-800-767-7513
Servant Travel specializes in making discount travel arrangements for those working with non-profit organizations that travel internationally extensively including churches, universities and adoption agencies. They work with over 40 carriers and can offer special airfares to adoptive parents. They can also waive many of the restrictions usually placed on the least expensive tickets offered by airlines.

Other tips for travel discounts

Often, tour operators and travel agencies that specialize in travel to a particular area of the world can offer lower airfares than buying directly from the airlines, even if they do not offer adoption fares specifically. FROMMER’S (www.frommers.com) is a great resource for budget travel information and has links to tour operators and travel agencies that specialize in travel to certain areas of the world. While there are some web sites that specialize in discount airfare, do not overlook the tour operators as they often can arrange discounted airfare to the destinations they specialize in even if you do not book a tour.

For example, on Frommer’s web site, I found INTRATOURS (www.intratours.com) which specializes in travel to Mexico and Central and South America. Mindful that many families adopt from Guatemala, I compared Intratours’ airfares with standard airfares between Boston and Guatemala City. For the dates I used, Intratours offered round-trip airfare on a major airline for $435.65 per adult. The same flights on the same dates on the same airline was $525.65 per adult when purchased through the airline directly, $90.00 more than buying the same tickets through Intratours.

The best advice is to check, double check, and then triple check airfare through various sources to find the best prices.

More to come?

In the future I may add sections on getting deals on hotels. If there is any other information that you think is missing, please e-mail me at Treelo8697@yahoo.com.

1. Once an adoption has been finalized in an international country, it does not matter for purposes of the federal tax credit that the parent(s) may re-adopt in the U.S.

2. Referenced rates based upon prime interest rate of 5.50% as of February 28, 2005.

3. “Open jaw” means flying into one airport and flying out of another.

4. This is an adult one-way fare as it is not possible to check one-way child fares online.