Let's face it... adoption is expensive. In fact, it's the #1 reason families considering adoption aren't able to move forward. Here at Both Hands, we're committed to building a world where finances are no longer an obstacle to adoption. In addition to doing a Both Hands project, we're so thankful to partner with other ministries to help provide funding resources to adoptive families. Discover some of our trusted partners...
Pathways for Little Feet helps bridge the financial gap keeping families from adopting. Pathways’ interest-free loan program provides up to $10,000 in adoption financial assistance. These loans are paid back through monthly repayments which support other families in their adoption journey. Learn more...
Other Resources to Check Out
The Adoption Tax Credit
The Federal Adoption Tax Credit (ATC) was established permanently in 2013 to offer financial relief to adoptive parents. It’s important to briefly note two things about the ATC:
- The ATC is processed as a tax refund, not a tax deduction.
- The ATC is non-refundable, which means that only adoptive parents with tax liability will benefit (in other words, you have to owe taxes to be eligible.)
We list the ATC first because no matter your adoption situation, it’s worth looking into this tax credit. The maximum amount (dollar limit) for filing 2023 taxes is $15,950 per child. Taxes can be confusing, so don’t be afraid to get a tax professional involved or ask your adoption agency for more information.
Lastly, don’t miss out on state-level adoption tax credits! These are a rarely-discussed benefit that’s potentially available to adoptive parents based on their state of residence and adoption situation. Check out this list from American Adoptions to see if your state offers an adoption tax credit. Also, make sure to ask your adoption agency if any state-level tax credits are available in your state, as there could be newly established tax codes in your area.
Our friends at Bill's Tax Service break down more of the details of the ATC on their site here.
Here at Both Hands, we're big fans of Julie Gumm’s fantastic book You Can Adopt Without Debt. In her book, Julie outlines the adoption process, gathering and presenting experiences and wisdom from all over the adoption world. We highly recommend this book to any adoptive parents or families considering adoption! You can buy You Can Adopt Without Debt at Amazon, Barnes & Noble, and Christianbook.*
*These are not affiliate links. Both Hands does not directly profit from purchases made through the links provided. We just love Julie’s work and want everyone considering adoption to have it!
More Adoption Grants Resources
Adoption grants are one of the best resources available to adoptive parents. Virtually all adoption agencies will recommend that their families apply for at least one, if not multiple grants available for their adoption. Each granting organization has their own qualifying process for applicants, so it’s best to do some research that’s specific to your family. In addition to the partners above, be sure to check out Gift of Adoption Fund, A Child Waits Foundation, JSC Foundation, and Katelyn's Fund.
More Adoption Loan Resources
Adoption loans are exactly what they sound like: loans to cover upfront adoption costs that the adoptive family will pay back over time. It’s important to understand this key difference between adoption grants and loans: While grants are effectively a gift that the adoptive family does not pay back, a loan requires the adoptive family to pay it back, often with interest.
Loans are not always a preferred option for financing your adoption, but it can be a necessary resource for adoptive families in specific situations. In addition to organizations like Abba Fund mentioned above, services like SoFi and USAA (for active military or veterans) loan program are a few options for families in need of loans for their adoption costs.
Disclaimer: Both Hands Foundation does not formally endorse the use of loans for adoption, and is not responsible for any information contained within the websites linked on this webpage.