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Sources for Funding your Adoption & Title IV Benefits 2007
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Presented by Dr. Carol Albers, LPC
Adopt Abroad Inc.
www.adopt-abroad.com
Presented at the U.S. Military Adoption Symposiums/ Naples, Italy & Kaiserslauther, Germany
www.usadopteurope.com
The KMC Adoption support group consists of all volunteers and has no commercial
affiliation. They have been providing adoption support services to Americans adopting while living abroad,
for the past 19 years.
There are numerous subsidies, grants, loans and means of making your adoption affordable- but
it finding and applying does take some work. The information provided is a general listing of sources available.
This is meant for educational purposes only, Adopt Abroad, Inc in no way endorses any of the listings below.
Clients are urged to check the information for accuracy.
TAX BENEFITS
Federal Tax
Federal Adoption Tax Credit: Up to $10, 960.00 in qualifying expenses can be deducted from your federal taxes. This
is per child. Check: www.irs.gov Look for publication 8839 -- Qualified Adoption Expenses. This form gets attached to your 1040.
Credit is noted on line 50 of the 1040 form.
This is a straight dollar deduction. You write off your adoption expenses
from your US Federal Tax. Benefits phases out at upper income brackets.
The credit applies to domestic and international adoptions. For international
adoptions the credit can only be taken after the adoption is finalized. There are limits on income, if your
adjusted gross income was greater than $159,450.00, the credit starts to phase out. Families earning more
than $199,450.00 the credit is not available. See IRS Publication 968 for details.
The credit is $10,630.00 per child; the amount remains the same even if you deduct
expenses over several years. Make sure you keep track of all expenses. If you carry over the credit,
make sure you keep all records of previous tax filings, credits, etc.
State Tax Benefits
Non-recurring Federal Adoption Program.
This is a one-time federal adoption subsidy, administered by the states in some
states includes foreign-born children adopted by US citizens. Amounts vary by state up to $2000.00 per child and require that the child
meet state criteria for the subsidy.
Many States in addition also offer a State Tax Credit for adoption. Check
your state s policy to determine what their eligibility requirements are.
Check the NACAC site: http://www.nacac.org
Military
Military Adoption Reimbursement Program: non-recurring subsidy program for full
time military personnel. Subsidy of up to $2,000.00 PER child not exceeding $5,000.00 in any calendar year. Contact your Personnel
Support Unit for more information
Military s Program for Persons with Disabilities. Military parents may
be eligible to receive up to $1,000 per month for a disabled or special needs adopted child. The Exceptional
Family Member Program ensures that the adoptive parents of special needs children are assigned to bases or duty
stations that can meet the child needs. Check www.nmfa.org
*If you are a member of the U.S. Army Reserves- check if your unit has any adoption
benefits.
Employer
Employer Adoption Benefits: Many companies offer adoption benefits ranging from
financial assistance to parental leave. Up to $10,630.00 in adoption benefits are treated as non-taxable income.
Check with your personnel department.
Grants
Gift of Adoption Fund- 877-905-2367 www.giftofadoption.org
JSW Adoption Foundation- 414 268 1386 www.swettfoundation.org
National Adoption Foundation- 203-791-3811. Offers grants and loan programs
www.nafadopt.org/LoanPrograms.htm (loans)
A Child s Desire Children s Charity-- www.achildsdesire.org
A Child Waits Foundation- 866-999-2445 www.achildwaits.org
Brittany s Hope 717 367-9614 www.brittanyshope.org
China Care Foundation- program for adoption of special needs children from China
203-861-6395 www.chinacare.org
His Kids Too, Inc. www.hiskidstoo.org
Lifetime Adoption www.lifetimefoundation.org
Miracle Moms --- miraclemoms@yahoo.com 513 521-6629 (infertile couples) www.miraclemoms.org
National Adoption Foundation- 203 791 3811. grants and loans www.nafadopt.org
Promise The Children ptcstaff@swbell.net www.promisethechildren.or
Dave Thomas Foundation- www.davethomasfoundationforadoption.org
Shaohannah s Hope 1-800-784-5361. www.shaohannahshope.org
The Shepherds Crook Ministries P.O. Box 773 West Chester, OH 45071 www.shepardscrook.org
TMG Foundation
info@tmgfoundation.org
The Boatner Family Foundation- POB 132272 The Woodlands, TX 77393-2272
The Looc Foundation (for adoption of Chinese girls) info@looc.org
The Potters Hand-- schopptalk@aol.com
Loans
A Child Waits- 914-962-0886 www.achildwaits.org. Loans based on financial
need.
First Union Bank Adoption Loan Program- 888 314 5437 or 1-888-314-kids
Available to residents of certain states.
The National Adoption Foundation www.nafadopt.org
Grants: 203
791-3811
Unsecured
loans: 800 626 2760
Secured loans:
800 841-1982
National Adoption Center- www.adopt.org
Religiously Affiliated Programs
Jacob Free Loan Foundation- http://www.adoptachild.us/Financial.htm 413-737-260. Interest
free loans for Jewish members of the community.
Hebrew Free Loan Association-http://www.hflasf.org/ Interest free
loans for Jewish adults.
Jewish Free Loan Association 323 761 8830. http://www.jfla.org/
Family Foundation Funding
Foundations allow families to raise money from friends, family, employers, and
throughout the community. When they donate money to your foundation , they will receive a tax deduction for
their donation.
Note: Check if the money donated goes to your adoption, what the tax rulings
are for that particular foundation and what administrative fees are charged.
for their foundation funding program
-
Children
from less developed countries
-
Under
10 years of age
-
Clearly
identified legitimate adoption
-
Need
to find 5 individuals who will donate $100 to start the account
-
And
consider other fund raising possibilities
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5%
goes to the endownment fund at the NHF
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Plan
to continue the fund raising.
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No
double dipping
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Application
fee of $185.00
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If
you do not follow through with the adoption funds remain at the NHF and go to another charitable cause
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Need
to check with tax consultant if you can deduct donations to your own account
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Left
over funds go
Child Adoption Funds- www.childadoptionfunds.org
Kingdom Kids Adoption Ministries- www.kkadoption.com 509 465-3520
Fund
Raising Ideas
Anna Bears Adoption Fundraising http://annabears0.tripod.com/
A Mother s Love www.amotherslovefundraising.com
Jill Savage fund raising ideas: www.jillsavage.org
Other
possibilities
1. home equity loans
2. borrow from family members
3. borrow from your 401k
4. credit card cash advances
5. life insurance loans
6. raise money through church and community support
7. check with any club or affiliation you belong to, some have programs
8. ask for donations of frequent flyer miles to cut some of the adoption costs
9. ask for a baby shower for items to be donated to the orphanages
10. contact the airlines and ask for reduced rates or waiver of fees to get your
child
11. Civic organizations - Lions Club, Masons and Shriners.
12. Consider asking your local newspaper to do a human-interest story on your adoption.
13. We have seen sites mentioning creating a fund raising FOUNDATION for adoption
at your local church. Please check the various sites regarding foundations and speak to your local clergy.
U.S.
Foster Care Adoptions
Title
IV Benefits
(Foster Care Children)
Previously children who received benefits while in foster care lost them when
they were adopted. To help encourage permanent homes for these children through adoption, the
Title IV-E Adoption Assistance was created in 1980. The Title IV subsidy program
helps to ensure that children who qualify for subsidies while in foster care, can continue to get services once
they are permanently placed.
Congress gave the individual states flexibility in how they define special needs,
the monthly assistance payments, how they determine the rates and what types of treatments they will cover.
Some states are more generous in how they define special needs.
Special needs adoptions as defined by the federal government as a factor or condition
that makes a child hard to place, such as age, sibling status, ethnic background, or physical, mental or emotional
challenges. Often children defined as special needs are those who are separated from their birth family,
live in foster care, are school aged, or have disabilities which require treatment- such as emotional scars, prenatal
drug exposure, or genetic pre-conditions.
Many families who adopt feel that since they have benefits that will cover the
child, they do not ask about Title IV benefits. Title IV subsidies are state programs that are available
for the benefit of the child. Even if the child is eligible for Medicaid benefits, apply for Title IV!!
As the state budgets get leaner, the treatments Medicaid programs cover get cut.
Title IV is a separate benefit. This could be helpful at some later date.
Check your state Title IV subsidy programs at: www.nacac.org adoption subsidies.
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