By Alicia McClung-Hetz
From first steps to first homeruns, dance recitals, graduations, and even heartbreaks, the joys of parenting are endless. But so can be the pitfalls of the lengthy and overly expensive adoption process. For many couples and individuals alike, the opportunity to provide a loving and nurturing environment for a child wouldn’t be possible without the option to adopt.
The rising costs of adoption make it hard for some to fulfill the dream of raising a family, and the process itself can be a bit overwhelming. Still, the potential love of a father or mother is invaluable and far more powerful than any process itself. For those readers who may be considering adoption but have become doubtful or discouraged, please read on. Don’t lose hope. Financial assistance and tax breaks are available to adoptive parents.
IRS Federal Adoption Tax Credit
Phone: Toll-Free, 1-800-829-1040
Web site: http://www.irs.ustreas.gov
- The adoption credit is non-refundable.
- The maximum amount of the credit is $12,650; that means that you can reduce your 2012 tax bill by up to $12,650.
- You can carry any unused credit forward up to five tax years.
- For 2012 returns, the credit is eliminated if your modified adjusted gross income (MAGI) is more than $229,710 and it begins to phase out if your MAGI is more than $189,710.
- The American Taxpayer Relief Act of 2012 (H.R.8) enacted on January 2, 2013 permanently extended the adoption credit and the adoption assistance programs for tax years beginning after December 31, 2012.
- For 2013 returns, the maximum non-refundable credit is $12,970, and the credit is eliminated if your modified adjusted gross income (MAGI) is more than $234,580 and it begins to phase out if your MAGI is more than $194,580.
America’s Christian Credit Union
America’s Christian Credit Union (ACCU) offers adoption loans for families who are pursuing international or domestic adoption. Applicants are required to become members of the credit union and must sign ACCU’s Statement of Faith.
Adoption loans are available up to $50,000 for terms up to 60 months at competitive interest rates. Applicants must meet credit standards set by ACCU. Once approved, loan proceeds will be immediately available to the borrower. Repayment of principle + interest begins as soon as the loan is disbursed.
The ABBA Fund
P.O. Box 78800
Charlotte, NC 28271-704
Phone: 1-888-775-3422; Email: [email protected]
This fund provides financial assistance for parents who believe that God is calling them to grow their families through adoption and need help with the “cash flow crunch” posed by adoption expenses. Also helps churches establish adoption funds.
A Child Waits Foundation
Provides low-interest loans for families who have exhausted other financial options and could not proceed with their adoption without this help.
A Child’s Desire
A Child’s Desire offers grants to parents adopting hard-to-place children, special needs children, and children over the age of eight. Offers adoption grants to nonprofit agencies, as well as an adoption fundraising program to adopting families.
Christian Advocates for Adoption, Inc. (CAFA)
Phone: 616-669-0655; Email: [email protected]
This organization works with Christian couples. The process starts with a homestudy and application that is reviewed by CAFA board members. Funding packets are sent to clients who contact friends, family and acquaintances requesting help with the costs of the pending adoption. As a 501(c)(3) ministry, donations to CAFA are tax deductible. Money is then distributed to clients for use in paying for the adoption.
Gift of Adoption Fund, Inc.
Phone: 877-905-2367; Email: [email protected]
The Gift of Adoption Fund provides grants to families with financial need who are seeking to adopt.
God’s Grace Adoption Ministry
Phone: 209-572-4539; Email: [email protected]
God’s Grace Adoption Ministry is a nonprofit organization helping adoptive parents overcome the financial burden of adopting children. It is not an adoption agency, but rather works in cooperation with the agency to assist the family with their financial needs. Depending on the individual family needs, financial assistance is available in the form of grants and interest free loans.
HelpUsAdopt.org is a national non-profit 501(c)3 financial assistance grant program that will provide qualified couples and individuals with grants of up to $15,000 towards their adoption expenses. Grants are awarded twice a year in June and December.
His Kids Too!
His Kids Too!, a 501(c)(3) charity, is a wonderful grant program designed so that your friends and family can assist you financially with adoption costs. Donors make tax-deductible donations to His Kids Too!, and adoptive families apply for a grant from the funds generated by donors. The benefit of this program is that you are in control of your fundraising efforts and donors will have complete confidence that donations will go directly towards adoption expenses.
Our Creator’s Hope, Inc.
Our Creator’s Hope believes that going into debt to give a child a home should not be necessary, so based on fund availability, OCH awards financial grants in the amount of $1,000-$10,000 to qualified families for domestic and international adoptions. OCH is a nonprofit organization.
The National Adoption Foundation has partnered with Prosper.com to provide adoptive families with adoption loans to receive the financing they need. Prosper is America’s first peer-to-peer lending marketplace and has over 1,480,000 members. They connect people looking to borrow money with people who have money to invest.
Saving Children, Building Families
The Saving Children, Building Families Foundation believes that every child deserves a home. Their goal is to direct the limited funds available to where it will do the most good based on the available information. They prefer to fund international adoptions.
Phone: 615-550-5600, Website: http://www.showhope.org
Awards financial adoption grants to qualified families already in the process of adopting. The size of the grant awarded is determined by several factors, the most important being need.
Alicia McClung-Hetz is a contributing writer and proud wife and mother of three who has a love for the arts and works in the legal industry.