6 Ways to Pay for Private Adoption

Every person or family looking to adopt or contemplating adoption has a unique set of circumstances, mindset, and needs and we have never encountered two alike. We wanted to provide you with a list of potential ways you may be able to make private adoption a reality for you. If you can’t just underwrite the entire journey to creating family, you may find something on this list or more than one thing that you can combine to make that dream of creating family a beautiful and rewarding reality.

(Disclaimer: Please understand that although these are feasible means to pay for your adoption it does not mean that they are the right decision for your financial future. Please consult your financial advisor before making a decision.)

1. Adoption Grants:

If you are unable to financially afford all or part of your private adoption, this may be your best and first step. These grants are not loans and they do not require payment. We recommend applying to as many as you can that you fit the criteria for.

You will find that many organizations or foundations that offer these grants require very similar paperwork, income verification, etc. so applying for one vs 5 or 10 is not much more work. Grab a nice bottle of old world wine, put on some music, and start applying. You can do a quick google search for Adoption Grants or start with the National Adoption Foundation, Gift of Adoption Fund, Help Us Adopt, or Katelyn’s Fund which is specifically for households with less than 100K a year of income.

We have had many hopeful parents be successful in getting some or all of their adoption fee covered by adoption grants like these.

2. Loans:

Adoption loans are sometimes used to supplement adoption grants or savings for a family. Many families are stable financially but don’t have the liquid assets or cash to pay in full for adoption and have the monthly income to afford long term repayment of an adoption loan. Adoption loans are a sister finance option to medical loans and can be approved and obtained in a short amount of time. One of the organizations that we have researched is through Suntrust Bank and is called LightStream. You can select the loan purpose as Medical/Adoption Expense Loan in the dropdown and begin immediately working towards the future of your family.

It is worth the time it takes to research and find out the stability of the lender, the interest rate (fixed or variable), any additional fees, etc… Again at Destiny, we want you to be fully educated and talk to your financial advisor before making any major decisions regarding your financial future.

3. Fundraising:

If selling chocolate bars or candles is your idea of fundraising than this might be a scary prospect for you but fundraising is so much more sophisticated and customizable today using the power of social media and more. You can be more traditional in your approach with a sponsored 5K or turn to some popular crowdfunding options.

AdoptionBridge.org and AdoptTogether.org are some of the more popular adoption specific crowdfunding options and allow you to build a family profile just like you do for Destiny and prospective birthmoms. Or you can choose more general leading crowdfunding platforms like GoFundMe or PlumFund.

You can weigh the pros and cons of fees and ease of use and decide what fits your needs the best and maybe use this as a part or all of your financial answer to paying for private adoption.


4. Savings:

Some families have the savings to write a check and begin the process of adoption. Some families think it is impossible but we have been shocked at the amazing fortitude and determination we have seen in families willing to rigorously budget and mange their money to build the cash savings to afford adoption.

Typically families use a combination of savings and some of the other options covered to create the means necessary for adoption. A new law, the SECURE Act, gives you the option of penalty-free withdrawals of up to $5,000 from each parent’s retirement plan. This includes adoption and not just the birth of a new child. It is covered under “Qualified Birth or Adoption Distributions”. Please use this as a last option and talk to your financial advisor before moving forward to understand the tax liability associated with a distribution.

5. The Adoption Tax Credit:

Families adopting both domestically and internationally are potentially eligible for the Adoption Tax Credit. The tax code provides an adoption credit of up to $14,300 for qualified adoption expenses in 2020. The credit is available for each child adopted, whether via public foster care or domestic private adoption. Please talk to your tax professional about how this might benefit you in your year end tax refund or liabilities.

6. Corporate Matching Grants:

In 2008, a Hewitt Associates survey reported that more than half of the large employers surveyed said that they provide some form of employer adoption assistance.

In his book “Adoption Nation,” Pulitzer-prize nominated journalist Adam Pertman says companies are finding that “providing adoption benefits not only displays social responsibility and an ability to respond to changing conditions, but also makes for more satisfied workers.”

This benefit can come in multiple ways depending on the structure of the employee benefit package. It can be a lump sum adoption benefit, a capped matching grant/assistance, partial reimbursement or payment of certain fees. Your best bet is to speak to your human resources department at your work and see if they offer anything for employees who choose adoption. Many times it is not overtly listed in your employee handbook or employee contract.

As you can see, their are so many options available to make your dreams of creating family through adoption a reality. We are ready and willing to offer you our advise on option we have seen work for families in the past and to begin answering even your toughest questions about the adoption journey.

Please don’t hesitate to call or email us today for a free consultation and to speak to a real live passionate adoption advocate.