Financing your adoption


Garage Sales/Church Bazaars
Get all the stuff you don't want or never use, and sell it. You'll need to make room for the new addition anyway. Best to start with a clean house and get rid of the clutter. You may think a garage sale will bring only a small amount of the money you need, but a couple hundred bucks will pay for your child's medical exam.

Money Shower
Have friends throw a shower, and in lieu of gifts, ask everyone to bring cash.

Online Auctions
Don't put the really valuable stuff you can spare in the garage sale; post it on an online auction site like eBay, Yahoo or

Get a Part-time Job
Take advantage of that "spare time" you have before baby arrives. Fill it by working a weekend or evening job for some extra cash.

Government Subsidies
Federal and state adoption assistance, generally referred to as adoption subsidy programs, are available to ensure that families who adopt waiting children have the necessary services and financial resources to meet their children's ongoing needs. Adoption subsidies are available for your child whether your home study was done by a public or a private agency.

Title IV-E Program
In 1980, Congress enacted the Title IV-E Program to remove financial barriers to the adoption of waiting children. Nearly all children waiting in the foster care system are determined to have special needs and many are, therefore, eligible for some adoption subsidy.

Although this is a federally funded program, individual states determine which children qualify. The subsidies, and their amounts, are decided on a case-by-case basis and the needs of the child. The subsidy undergoes an annual renewal process, and the adoption agency helps families through this process.


According to the North American Council on Adoptable Children, to qualify for the Title IV-E adoption assistance program, several criteria must be met:

1. The court must have ordered that the child cannot or should not be returned home to the birth family.
2. The child has special needs, as determined by state definition.
3. The child could not be placed for adoption without a subsidy.

Adoption assistance is exempt from taxation. However, the level or amount of assistance may affect whether the child can be claimed as a dependent and listed as an exemption on your income taxes. As much as $5,000 in employer-provided adoption benefits (up to $6,000 for special-needs adoptions) per child may be excluded from your income. You may claim both a tax credit and an exclusion in connection with the adoption of an eligible child but may not claim the same expenses twice. As with the tax credit, tax-free adoption benefits are gradually phased out once family income rises above $75,000.

Source: National Adoption Information Clearinghouse

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