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Let’s face it. The cost of adoption these days is nothing less than staggering. Tough to handle really, considering the logistical process is equally daunting. Andrea Poe, author of The Red Thread, an adoption column for the Washington Times, went through the adoption process first hand, and knows a thing or two about the system. Here are her top tips for handling the cost of adoption.
Domestic is more affordable:
While there are many wonderful reasons to consider overseas adoption as well, the sad truth is the cost difference is tremendous. Domestic adoptions can range from $1,000 – $5,000, while international fees can climb to as high as forty grand. That doesn’t even include travel and accommodation costs, which can also be significant, according Poe.
Loans, grants and subsidies:
When it comes to the money, Poe’s advice is not to panic. If you need financing help to absorb the cost of adoption, the National Adoption Foundation offers low and no-interest loans for adoptive families to spend on expenses. Lifesong for Orphans also offers interest-free loans as well as matching grants, although they do prefer a particular religious affiliation. Active duty military personnel have access to a one-time subsidy program to help cover the cost of adoption fees, although many are unaware of it.
Tax credits:
Poe points to tax credits as an area often overlooked as families decide how to deal with the cost of adoption. Right now, the federal government is allowing an adoption credit of up to $13,170 that’s good for the next few years. After that however, the sun will set on this particularly sweet financial option, and the allowable credit will be reduced to $5,000 per adoption, with $6,000 allowed for special needs adoption. State tax credits are nothing to sneeze at either says Poe, with certain states offering credit amounts in the thousands as well. She advises checking with your state’s division of family services as well as the tax office to find out if you qualify for their particular programs.
Matching corporate gifts:
Another helpful tidbit Poe points out is the possibility of corporate matching gifts or adoption assistance programs, otherwise known as AAPs. Places you can check on the web for further AAP information include Adopting.org, Adoption.com and the Dave Thomas Foundation’s list of adoption-friendly employers. While some may be shorter on the cash and heavier on the referral services, it helps to remember that these are all things you would have spent time and financial resources to figure out on your own. This is an overwhelming financial process, and every little bit helps.
Travel planning:
If you do go with the overseas adoption plan, Poe says to remember that cash is still king in many parts of the world. While I concur, this surprised me a bit. I expected her to advise a low, or no-foreign-transaction-fee credit card as a top strategy for dealing with the cost of adoption overseas. While that isn’t necessarily a bad idea, her advice was more for how to keep exchange fees down, and points out that even ATM fees are markedly less than paying conversion rates on large amounts of cash. Not to mention less risky. She also hails budget accommodations as something to consider, because even if you’ve planned ahead, it will likely take twice as long to complete the overseas process as you originally expected.
