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Adoption Financing: How to Afford Adoption

Your Adoption Financing Options

You deserve to fulfill your dream of becoming a family. But, the costs associated with adoption can be hard to understand. This guide will explain adoption financing options so that you feel confident taking your next steps toward building a family.

If you want to get more adoption information now, then you can contact us online at any time.

How to Finance Adoption

There are many different adoption financing options, and the right ones for you will depend on your situation. Some hopeful adoptive parents rely on all these methods while others use only one or two of these adoption financing options. In other words, no two adoption journeys are the same.

American Adoptions will always be honest and transparent with you when it comes to adoption costs and fees. You’ll know exactly what to expect, which helps in planning and knowing what you need for financing.

Remember to speak to a financial advisor about your adoption plan before making a decision. Below, we’ll look at various adoption financing options, such as grants, loans and more.

Grants for Adoption Financing

There are many organizations that award adoption grants to eligible families. Each organization has different requirements that hopeful families must meet to qualify. There are also varying levels of funding available. So, be sure to apply for several grants to diversify your options. One of the key benefits of adoption grants is that, unlike loans, you do not repay these.

Loans for Adoption Financing

Adoption loans are a counterpart to adoption grants. Both meet the same need. Although many hopeful families are financially stable, they don’t have the cash on hand to pay for adoption. But, unlike adoption grants, loans are a type of adoption financing option you have to pay back over time.

This doesn’t mean loans are bad, though. In fact, the average American takes out long-term payment plans on everything from a house to a car to a couch. Rather, it’s the type of loan that matters. Ask yourself questions like:

·      How trustworthy is the financial institution?

·      Is it a fixed interest loan?

·      Are there additional fees?

If you are considering a loan to make affording adoption possible, then do some research to find the best loan available. You can learn more about grants and how they help adoptive families by contacting us today.

Fundraising for Adoption Financing

Many hopeful adoptive parents turn to fundraising when financing an adoption. There are so many different ways to fundraise. You can get creative with it and get your community involved. Every penny counts in adoption fundraising, and the possibilities are endless. For example, you can start a:

·      GoFundMe

·      Social media campaign

·      Lemonade stand

·      Car wash

·      Garage sale

·      Bake sale

·      And much more

Don’t be afraid to talk to your friends and family and see if they’d be willing to help you organize something. This method can be pretty fun when you’re surrounded by great company!

Savings for Adoption Financing

This may seem like a lofty goal to many, but, for some, it is possible to finance an adoption from savings alone. This takes preparation and rigorous money management, and it won’t happen overnight. But, if you create a plan and stick to it, you can save quite a bit.

Typically, though, a hopeful adoptive family creates financing for adoption through a combination of savings and the other methods listed here.

For instance, the SECURE Act allows penalty-free withdrawals of up to $5,000 from each parent's retirement plan for a new child. This includes adopted children. Still, there are some eligibility requirements. You can only withdraw within one year after adoption finalization. You would also owe taxes on any money you take out of your retirement fund.

This is generally considered a last-resort option, so talk to a financial adviser or your human resources representative before committing to this path.

The Adoption Tax Credit

Hopeful adoptive families might be eligible for the Adoption Tax Credit. Your eligibility and the amount of credit you receive depend on your situation. The maximum amount families can receive as of 2021 is $11,440. Also, it’s calculated as a tax refund rather than a deductible expense.

Although the details can be complicated, the key takeaway is that any hopeful adoptive family should look into the adoption credit. Talking to a tax professional can be helpful, too.


As you can see, there are many adoption financing options. Adoption can be expensive, and affording adoption takes preparation and hard work. But, with the right grants, loans or fundraisers, you can reduce the cost.

It’s also important to work with an adoption agency like American Adoptions, which provides honest, transparent and detailed information on your adoption costs to help you plan for what’s ahead.

If you have more questions about how to finance adoption or the cost of adoption, then you can get more free information now when you fill out our online contact form. We’re looking forward to hearing from you!

Information available through these links is the sole property of the companies and organizations listed therein. American Adoptions provides this information as a courtesy and is in no way responsible for its content or accuracy.

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Frequently Asked Questions

Do we need to retain our own attorney?

No, American Adoptions has established relationships with some of the best adoption attorneys in the nation. Because adoption laws vary from state to state and between counties, it is important to utilize the services of an adoption attorney who specializes in the state where the adoption will finalize, which is unknown until you match with an expectant mother. You have the right to retain your own attorney, but doing so may be an additional, unnecessary expense.

Can we choose the gender of our baby?

American Adoptions does not allow gender specificity in adoption. Any family who wishes to be gender-specific in their adoption should contact us at 1-800-ADOPTION and ask about the possibility of an exception waiver before taking any other steps toward adoption with our agency. Any families who do receive an exception to be gender-specific may also incur an additional fee, which helps cover the additional advertising costs of such a request.

Please note that gender specificity will likely increase your wait time significantly.

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