With proper financial planning, adoption can be an affordable option for many families. Whether you're interested in adoption grants or loans, the list below includes some of the resources available to prospective adoptive parents. We encourage you to contact your adoption agency or adoption attorney for more information on financial resources that may be available in your area. If you have not yet met with an adoption professional, start by using NCFA's searchable database.
IRS Tax Benefits
In March 2010, the adoption tax credit was included in the Health Care and Education Reconciliation Act (an act amending the Patient Protection and Affordable Care Act), delaying its sunset until December 31, 2011. This increased the maximum credit (indexed for inflation) to $13,170 per eligible child and also made the credit refundable for tax years 2010 and 2011, which allowed families to receive the full benefit during a single tax year regardless of taxes due that year.
In December 2010, the Tax Relief Act extended the adoption tax credit through tax year 2012; for this year, the credit is once again nonrefundable. The current maximum allowable adoption tax credit is $13,400 for 2015 and will increase to $13,460 for 2016.
Find out more about the Adoption Tax Credit by visiting the IRS Adoption Credit website, or by reading NCFA's Adoption Advocate No. 21, "Tax Benefits for Adoption: The Adoption Tax Credit." Find out how you can help advocate for the adoption tax credit's extension by downloading NCFA's Adoption Tax Credit Advocacy Kit here.
America's Christian Credit Union offers loans for prospective adoptive families. Their mission is "To Reach, Serve and Teach," and since 2009, more than over 1,300 children have found their forever family through ACCU's adoption loan program. Click here to visit ACCU's website.
As NCFA's "Partner for Adoption," ACCU created an 30-minute video for NCFA's community exploring financial options for prospective adoptive parents. Click here to view "Removing the Financial Barriers to Adoption."
Employee Benefits Program
Many companies and organizations offer benefits such as leave or financial assistance to their employees who are adopting. Your employee benefits office will be able to tell you if your company participates, or you can search The Dave Thomas Foundation for Adoption Best Adoption-Friendly Workplaces List to see if your company is listed.
Adoption Benefits for Military Personnel
Military service members who adopt a child under 18 years of age may be reimbursed qualified adoption expenses up to $2000 per adoptive child (up to a total of $5000 if more than one child is adopted) per calendar year. Read more about adoption benefits for military personnel on the Military Family Association website.
Adoption Grants and Loans
- A Child Waits Foundation
- The Abba Fund
- America's Christian Credit Union
- Brittany's Hope
- Gift of Adoption Fund
- God's Grace Adoption Ministry
- Kately's Fund - Orphan Ministry
- Lifesong for Orphans
- National Adoption Foundation
- Noah Z.M. Goetz Foundation
- Pathways for Little Feet
- Resources 4 Adoption
- Show HopeTM