The costs of an international adoption can be surprisingly high. Agency fees, legal costs, and travel expenses often total over $25,000 USD. But a shortage of funds needn’t be a barrier to adopting the child of your dreams. There are plenty of resources and policies that make the process more affordable. Here are some that we thought you’d like to know about:
Grants and Loans
Nonprofit and faith-based organizations offer grants and loans specifically to families wishing to adopt. A popular source of this type of support is the National Adoption Foundation (NAF). The NAF grant program applies to all legal adoptions, including international ones, and all income levels. Families just need to submit a one-page application and either a completed or in-progress home study (a requirement for any adoption) to be considered for a grant. In partnership with Citizens Bank, the NAF also provides low-APR loans of between $5,000 and $50,000 USD for adoption related expenses.
For any grant or loan, be sure to carefully review the eligibility criteria, because some are based on religion, income, or location (of the family or of the child). Also, it’s important to compare the terms of an adoption-specific loan to a general or home equity loan to be sure that you’re getting the best deal.
Fundraising Sites
Many adoptive families are taking full advantage of fundraising web sites to share their inspiring stories and attract donations from friends and family. Here are two of the most popular:
GoFundMe is the biggest social fundraising platform in the world and boasts a community of over 40 million donors. It allows users to create a personalized campaign page, easily share it with others, and collect and track donations. Campaigns cost nothing to launch, but the site charges about 8 percent per donation.
AdoptTogether.org is the largest crowdfunding platform that’s especially for adoptions. The free registration process involves completion of a short online profile. Your supporters’ donations initially go to Pure Charity, a new partner of AdoptTogether, and then get channeled to you. There’s a 5 percent transaction fee per donation.
Sliding Scales
Some agencies reduce fees in certain situations. They may charge according to a sliding scale that considers your income level and which child (or children) you’re adopting. You may find that adopting an older child, a child with special needs, or more than one child lowers the cost.
Employee Adoption Assistance
Check with your employer’s HR department to see if they offer adoption assistance. Some companies, regardless of size, might reimburse you up to $10,000.
Military Reimbursements
Active-duty US Armed Forces personnel are entitled to reimbursements of up to $2,000 per child and $5,000 per year for most one-time adoption costs. You will receive these funds after the adoption is finalized.
Tax Credits
The US Government provides generous tax credits and exclusions for adoptions. Credits get applied to what you owe the government at the end of the year, so they’re much more valuable than deductions. As of 2017 when it was last updated, the maximum credit per adopted child was $13,5700. If your credit exceeds your liability for the current year, you can carry it forward up to five years.
A certain amount of employer adoption assistance can be excluded from income, meaning that you won’t get taxed on it. Both credits and exclusions can be obtained by submitting Form 8839.
In the UK and Australia, you may be eligible for tax benefits for parental leave and/or childcare expenses. As we are not tax experts, please consult with your accountant before acting on tax information.
International Online Money Transfers
When it comes time to make a cross-border payment to your adoption agency, avoid the poor exchange rates and excessive fees of banks. Send money online safely and conveniently through a money transfer provider. You can use our comparison tool to identify the least expensive one for your needs. Because every penny saved gets you closer to your new bundle of joy.
