Financial Considerations

     Trust was a big aspect of this adoption (for us), as well as faith.  We went into our adoption with less than 1/3 of the finances we needed to complete this process.  It was a little frightening, but exciting at the same time.  We knew that this was Gods will, now we had to trust the money would come. 

     We suggest that you first look at your possibilities before applying for grants.  Grants are limited and may be the only means some have to complete an adoption.   We thought that these grants might be the only way we would be able to raise the necessary money, but in the end the money came without receiving grant funds.

      Know that God is listening.  He will be with you and provide during this.

GRANTS 

    Unfortunately, in today’s society, you have to be careful when giving out your personal information.  Are there those who will take advantage of even an adoption need? Yes, unfortunately.  There are a few rules we follow. 

Do

1.       Get a list of recommended grants from your adoption agency.

2.      Talk to those that have received grants and apply to those foundations.

Don’t

1.      If a grant foundation is asking for an application fee, then we did not apply.

Why?  These are foundations trying to aid with adoption costs.  Charging a fee to someone who is asking for money can be the sign of a scam (though not definitely).  You may not be accepted and they have your money and private information.  Remember how easy identity theft is now a days.

2.      If a grant foundation requires your adoption agency to pay a fee to be on a “preferred members” list then the possibility of a scam exists here as well. 

Remember if someone is trying to help you financially, a red flag should immediately be raised when you or your agency is required to pay a fee.

Suggested  Grants

     These are grants which we personally have discovered to be legitimate.

1. National Adoption Foundation  

www.Nafadopt.org

 2. Shaohannah’s Hope

www.Shaohannahshope.org

     Most of these grants are considered quarterly and the applications are considered in the order they are received.   The sooner you turn your application in to be processed the better.

LOAN’S

Do

1.      The first thing that you need to look at when looking at loans is the ability to make the monthly payments.

 2.  The next two questions need to be the following.

a. What is the interest rate?  b. How long do I have to pay it off?

Don’t

     Don’t apply for a loan because it say’s “adoption loan” and trust that it has the lowest interest rate. 

When looking for a loan

     When looking for a loan don’t blindly accept the phrase “adoption loan”.  Even the National Adoption Foundation has a loan through a reputable bank.  While applying for this loan we found they had a lower interest rate loan that was not an adoption loan. 

1.      If you own a home a home equity loan will likely have the lowest interest rate.

2.       Some mortgage companies will also offer a loan that can be written into your mortgage payment.  This loan will be for the length of your mortgage and therefore can be a much lower payment option. 

     Bank of America is where we received our loan and we were very happy with them.  We received a revolving loan that was not activated (payments due) until we started using the money.  This was very helpful and we used this money last.

IRA’s and 401K’s

     Many would be appalled at the thought of cashing out an IRA.  What about your adoptive child’s future, your future?  An IRA can be built up again.  This child may not have much chance at survival, just the ability to get enough nutrition, if you choose to wait for this reason alone.

     Many Funds (IRA/401K) will allow you to borrow (with a low interest rate) against these funds.

CREDIT CARDS

         Get a credit card, sigh….this may not always seem like a great option, but opening a low interest rate credit card, solely for our adoption, made bringing Max home feasible.    Many agencies will accept a credit card for only specific fees.  Be sure to check what fees or how much of the adoption you can use this for.  It is also a good thing to have (in case of an emergency) for the trip to see or pick up your child. 

         Make sure that you get an interest rate that is fixed.  If it is not then they can feel free to hike up the interest at will.  Avoid the word “variable”.

FUND RAISING

         Fund raising can include many things, from garage sales to sending letters out.  My husband and I really didn’t want this to be an avenue that we needed to take, but through doing this many felt a part of our adoption. 

         The first rule of fundraising is… be creative. 

          The second is… be kind.  Don’t make others feel guilty for the inability to help.  They may not be able to or they may not place the same priority on adoption.  Everyone has a call, this may not be theirs.

         The most important rule is to trust God and pray.  He will provide.  We had a community of brothers and sisters in Christ making our petitions known.  He will provide.

       Here are a few ways to accumulate the money necessary for your adoption.

1.      Refinancing your home:  We took this option when the interest rates lowered.  We received a couple thousand (though this will vary) back from our escrow account from the previous mortgage company.   We have refinanced successfully and happily through Jefferson.

2.      Certain companies will donate a percentage of the profits of items you sell toward your adoption, companies such a Tupperware and Pampered Chef.  If you are interested you can do a web search to find a reputable company (check Better Business Bureau).  Be careful, as with anything, with those that may require a lot of money up front or a lot of personal information.  There are predators out there that don’t discriminate.

3.      Garage Sales/Yard Sales:  You may want to do this just from your home. You may also consider asking your Church or other organization you are a part of if they would be willing to do this as a fundraiser.   This is a way people may be able to help by just digging through their closets.  Many may be able to do this where as they may not be able to help financially.  A large or Church wide garage sale can bring in more money than most realize.

4.      Writing letters:  We wrote letters first to our Churches we grew up in and to the Church’s we are currently members of.  We also had some friends that took a letter to their Church’s stating our need.  We then wrote letters to close family and friends.  Remember to state that you do understand if they aren’t able to help right now.   Many have other things going on and are just not able to help right now.  Don’t get discouraged if even those you thought would be able to help can’t.  There are so many needs in this world today that everyone has to look to what they can afford and their commitments. 

5.      Car Wash:  Your Church’s youth group or an organization you work with may be willing to do this.

If you have any idea that we don’t have listed, please contact us! We love new ideas!

Taxes Explained

     For both Domestic and International adoptions you will receive and income tax credit.  Currently for International the Credit is $11,360.00.  It is slowly phased out the more you make annually.

     This is a credit and will not be given as a straight sum when filing taxes.  It will counter the taxes due and enable you to receive a larger refund.  It carries over to following years until used.  We had our agency write a letter on their letterhead stating the amount of cash processed through them.  Don’t forget to save all your receipts!