Financing an Adoption

Adoption is an exciting life milestone, but it can also be a pricey one. Depending on the type of adoption you choose to pursue, you could expect to pay thousands of dollars.

Fortunately, there are many different methods of adoption fundraising and financing that can help you cover the costs. That’s why we’ve created this guide of five ways of financing adoption in California. You’re already making the selfless decision to provide a loving home for a child in need, and finances shouldn’t be a barrier to that.

If you have any questions about financing an adoption, then you can contact us online to get more free information now. In the meantime, these are five different ways that can help you with adoption financing in California.

1. Adoption Tax Credit

If you’re wondering how to afford adoption in California, then the federal adoption tax credit could be beneficial. The amount of attainable credit varies each year, but the maximum credit for 2021 tax returns was $14,440 per eligible child. After the adoption finalization, you can use this credit toward your tax obligations.

Keep in mind that this tax credit is non-refundable, but, if you don’t use all of your credit during your first filing, you can apply it in later years. It can be used for qualified adoption expenses, such as:

• Reasonable and necessary adoption fees
• Court costs and attorney fees
• Traveling expenses

Also, the amount of credit you qualify for will vary depending on your modified adjusted gross income (MAGI). Regardless, the federal adoption tax credit can be a helpful method of adoption financing in California.

2. Adoption Grants and Adoption Loans

Another way you can go about financing adoption in California is to apply for grants and loans.

Because it’s common for hopeful parents today to go through various expensive family-building processes, some organizations offer loans and grants for adoption to help people achieve their parenting dreams.

Every adoption grant and adoption loan will have specific requirements for eligibility. For instance, many require a finalized home study as part of the adoption grant application. Beyond those, requirements can be based on the organization itself.

For example, faith-based organizations likely have religious requirements. Others may require families to meet a certain credit score. Any adoption grant application form should be clear about its conditions for eligibility so you can focus on your adoption fundraising efforts, not deciphering bureaucratic forms.

Likewise, when you’re applying for an adoption loan, make sure you understand its terms and conditions, including interest rates and payback periods. If you’re considering taking out an adoption loan, then make 100% sure that you can pay it back, including those sly interest rates.

Be sure to research your options before applying for and accepting any grants or loans. Our agency is not affiliated with these entities and does not specifically endorse any such program.

3. Adoption Fundraising

On top of financial assistance programs, you can also start some adoption fundraising campaigns to save money for your adoption expenses.

Adoption fundraising is a popular way to raise money for adoption costs, especially with the wide reach of the internet and connecting with close communities of friends and family. One of the easiest ways to go about this is simply asking for help. For example, instead of usual holiday or birthday gifts, you can ask for donations to your adoption funding campaign.

You can also create an online fundraiser through websites like GoFundMe. This kind of online presence means it can reach plenty of people. It’s also easier for loved ones to donate whatever they can afford and share the fundraiser with others. Still, there are many other adoption fundraiser ideas you can try, such as:

• Yard sales
• Walk-a-thons
• Bake sales
• Car washes
• And more

4. Adoption Saving

Another vital adoption financing method is saving for future adoption costs. Adoptive parents can make certain lifestyle changes, like:

• Eating out less
• Clipping coupons
• Creating strict budgets

For those interested in saving money, finding the right adoption professional and choosing the right adoption process can play a large role in this. For example, foster care adoption is much cheaper than international adoption. So, adoptive parents looking to save money should consider the differences in each process’ costs. Look for an adoption professional who provides as many services as possible, as well.

Although the initial price can be steep, it’s much more cost-effective to work with an agency that handles all parts of the process, rather than hiring multiple professionals along the way. That’s because each of those professionals comes with their own fees.

5. California Foster Care Subsidies

If you’re interested in pursuing foster care adoption in California, then you may qualify for the state’s Adoption Assistance Program. This adoption financing program provides financial aid to hopeful parents who want to adopt a child from the foster care system.

To be more specific, some of the benefits that an eligible child may receive include:

• A monthly negotiated rate
• Medical coverage through Medicaid or Medi-Cal
• Reimbursement of non-recurring adoption expenses (up to $400 per adoptee)
• Payment for an eligible out-of-home placement
• And more

So, can you finance adoption? Yes, you absolutely can. You can also join adoptive parent support groups for advice from others who have been in your shoes. Fill out our online contact form to get more free information now. We’d be more than happy to help you today.