4 Middle-Class Options To Fund Your Adoption

Posted on: 9 September 2015

Having a family is important to many people, but it is not always a natural possibility due to medical conditions such as infertility. Thankfully, adoption allows individuals and couples to start a family even though they are physically unable to do so. In addition, many people choose to adopt even when there are no known physical issues. While it is a wonderful option, adoption is also very expensive. Considering adoption may cost an estimated $40,000, finding ways to pay for the important next step in your family is smart. Using one or more of these ideas, you can afford the adoption fees necessary to begin or add to your existing family.


Growing your family with a great deal of debt may not sound like an appealing option, but loans are a viable way to pay for the adoption. Utilizing a credit card, with a high limit of available credit, is possible, but here a few other loan options to consider:

  • Home Equity – If you are a homeowner, consider a home equity loan. This loan allows you to borrow a small percentage of your home's overall equity, offering you some or all of the money you need for the adoption.
  • Cash Out Refinance – A cash-out refinance is also a possible loan option for your adoption. This allows you to refinance your current mortgage, plus extra, which you can use towards the adoption.
  • Adoption Loan – Loans specifically designed for adoption are also available. Since the National Adoption Foundation offers loans up to $35,000, you may be able to borrow almost the full amount of your adoption at an affordable interest rate. Of course, this is based on your credit score.

Tax Credit

If you need to borrow the money to pay for the adoption, be sure to claim the adoption tax credit when filing your taxes. This credit will help when it comes time to pay off or towards the debt.

As of 2015, the Federal Adoption Tax Credit offers up to $13,500 per child, but there are stipulations. If you total household income is under $201,010, you can claim the full credit. If your total household income is over $241,010, you are not eligible for the tax credit.

Employer Benefits

Many small and large companies receive tax credits by offering their employees adoption benefits. While the actual amount varies from business to business, asking your employer about possible help with your adoption is smart.

If your company offers even a small percentage towards your adoption, you can cut your own costs and time necessary for finding loans and raising funds.


Fundraising is becoming a popular option for individuals and families who need help funding their adoption. Traditional purchases or events in your local community can raise a large amount of money in a short time frame. In addition, conducting multiple fundraisers over the course of a few years could raise enough to fund the entire adoption. Here are a few fundraising ideas to consider:

  • Restaurants – Ask local restaurants if they will consider a fundraising night in honor of your adoption. The restaurant may offer a small percentage of the total sales during this time. While this helps raise funds for your adoption, it also helps increase the restaurant's business. Be sure to advertise the time and date of the event in a public place and share with neighbors, friends, coworkers, and family.
  • Raffle/Game Night – Ask your local community center, school, or church if you can use a facility for a raffle or game night to raise funds for your adoption. Ask local businesses or individuals to donate gift certificates or homemade items. Sell raffle tickets or play games and award winners with the prizes. Using donated prizes will ensure your fundraising event does not cost you any money out of pocket, but it will maximize your profit needed for the adoption.

Adopting a child--whether it's an international adoption or a local adoption--can be a wonderful experience, but proper financial planning is important. Using this guide, you will better understand your options.