Funding Your Adoption – Grants and Loans

In the last article on adoption funding, we talked about how you can take advantage of your resources to fund your adoption, as well as finding ways to cut back. This is where you should start, but for many families it won’t be enough. Another resource for adoptive families are adoption grants and loans.


Adoption grants are a wonderful resource for families. Non profit organizations, many of them run by religious organizations, try to help defray the huge cost of adoption for families. Some grants, like those offered by the National Adoption Foundation, do not have specific requirements. Others, such as God’s Grace Adoption Ministry, may require a specific religious affiliation. Still others, such as The Nikita Fund, may be specifically for families who are adopting children with special needs.

Unfortunately, there is a downside to these grants, and that is that EVERYONE applies for them. The need for financial assistance is much greater than the resources of these foundations. Because of this, many worthy families will not receive a grant. If you are of a higher than average income or if you want to adopt a healthy infant, then you are less likely to be selected. I don’t say this to discourage you, but just to help you understand how these work. I would definitely encourage you to apply for the grants because you never know if you will be selected. One great place to look for adoption grants is the Adoption Help list.


Loans are also a great option. You can borrow money from your bank or use credit cards, but there are also organizations that offer low interest loans to families who are adopting. The advantage to these loans is that when you pay the money back, the same funds can be used to help someone else with their adoption.

Of course, the thing with loans is that you do have to pay them back. However, that may not be as much of a struggle as you think because of the adoption tax credit. Qualifying families can receive a tax credit of $10,000 when their adoption is finalized. Many families will use their tax refund checks to pay off their loans. Talk to your accountant to find out if you are eligible for this tax credit, which does have some limitations. To find out more about loans, you can go to the Adoption Help list as well.