The Different Adoption Costs and How to Adopt Without Going into Debt

As a prospective adoptive parent, you are likely researching various adoption agencies and professionals with one big question in mind: How much will this adoption cost, and will it fall within our budget? Many people say that they would really like to adopt but they automatically think they can’t afford it because the one word that comes along with adoption is EXPENSIVE. The one important piece of advice we urge our readers is to not just choose one specific adoption route because it is less expensive than the path you feel most. There are a lot of other important factors to think about when picking out the right adoption plan for your family. Be very honest with yourself and choose the adoption plan that you feel most comfortable and then focus on the cost associated with that choice. There are so many different ways that you can raise money throughout your adoption journey to help offset the cost and stay out of debt!

Statistics on the Cost of Different Adoption Plans

After making the decision to adopt, your family should understand and anticipate the financial costs associated with the different kinds of adoption. Costs of adoption may be minimal or can total more than $40,000, depending on a number of facts. The wide range of cost is dependent on the type of adoption, type of placement, agency, child’s age and many other different factors. Below are just a few statistics of how much adoption can cost, which are based on the different types of adoption.

• Licensed private agencies- Fees range from $4,000 to $30,000.
• Independent adoptions- This type of adoption is not allowed in most states but adoptive parents report spending $8,000 to $30,000. Fun fact, they spend over $5,000 in advertisement alone!
• Intercountry Adoption Costs- If you’re adopting a child from another country, the range of adoption cost is $15,000 to $40,000+.
• Foster Care Adoption- If you’re adopting through foster care, which generally involves becoming the parent of an older child, the cost is much lower: zero to $2,500.

Why does Adoption Cost so Much?

So what exactly are you paying for, other than the opportunity to become a parent? Breaking down the total cost into universal expenses and adoption-specific expenses might help you better understand where the costs come from and the best plan to pursue for your family.

1. Universal Expenses: These are the type of expenses that occur for every type of adoption, including the home study and court costs

• Home Study: A home study must be completed for all prospective parents no matter what type of adoption you pursue. For a public agency adoption a home study may be waived or cost a minimal of $500. With other types of adoption it might cost $1,000-$3,000 for the home study alone.
• Legal Fees: All domestic adoptions and some intercountry adoptions must be finalized in the court in the US. The cost for court document preparation can range from $500 to $2,000, while the cost for representing adoptive parents in an open adoption can range from $2,500 to $6,000.

2. Adoption-Specific Expenses: In addition to the costs common to every adoption, adoptive parents incur costs to the specific type of adoption that they choose.

• Public Agency Adoption Costs: Most public agencies focus on placing children from foster care. Up-front fees and expenses for this type of adoption can be as much as $2,500 which includes attorney’s fees and travel expenses.
• Private Adoption Costs: These costs widely ranges depending on the type of agency used. There is a licensed private adoption agency, an independent adoption agency and a facilitated/unlicensed adoption agency. The cost of private adoption agencies can range from $5,000-40,000 depending on which agency you choose to go with. Working with a private adoption agency definitely comes with a lot of benefits as the fees cover basically everything.
  • Free services provided to the birth parents
  • Educational Courses
  • Advertising and marketing
  • Home studies
  • Post placement support and paperwork
• Intercountry Adoption Costs: Agencies that provide intercountry adoption services charges fees that ranges from $15,000-$40,000+. These fees generally include immigration; court costs and in some cases a required donation to the foreign orphanage or agency.

Tips on How to Save Money While Adopting

Prospective adoptive parents may be concerned about to costs of adopting a child, as is understandable based on the range that was given in the beginning of the blog. The important thing to understand is that to become a parent in general is rarely free of expenses, as pregnancy and childbirth can be extremely expensive as well. However, with the proper planning and knowledge about the different types of adoptions and available resources, it will be easier to develop a budget and set a plan in motion. A great book that has helped a lot of our hopeful adoptive parents afford adoption is the book Adopt without Debt written by Julie Gumm.

1. Adoption Grants: Adoption grants are basically “free” money for your adoption. But free doesn’t mean they don’t come without work. There are three basic grants that are available for any adoptive parent looking to help with the payment of their adoption.

• Direct Grant: Direct Grant organizations review applicants and award money outright. The money is never paid directly to families, but is paid to your adoption agency or attorney. These are usually the hardest grants to receive. Resources4Adoption is a great go-to database for adoption grants and loans. Some organizations that reward direct grants are; Gift of a Adoption, Show Hope and a Child Awaits.
• Fundraising Grant: This gives you an account with a non-profit grant organization to which people can donate. This provides your friends and family with the added benefit of a tax deduction when they give to your adoption fund. Some examples of great fundraising grant are; Lifesong for Orphans and His Kids Too!
• Matching Grant: basically a combination of direct and fundraising. The grant organization allows you to fundraise and provide the tax benefit to your donors. Then they match a certain dollar amount of donations received.

2. Adoption Loans: Loans may make sense to cover large and immediate expenses that may be reimbursed later by your employer, the military, or the government’s reimbursement of non-recurring adoption expenses. One source of loans is the National Adoption Foundation which can be accessed through nafadopt.org.

3. Fundraisers are a great way to raise money for your adoption while having a great time! Here are just a few ideas we found that helped raised a lot of money, while getting the whole community involved!

• “Tag The Bag”: Pick out the bag you are going to use for travels and get your family and community together. Put a price on how much you would like to raise and put a specific amount together per signature!
• “Adoption Fund Garage Sale”: We had an adoptive family hold a garage sale teaming up with their local church and they raised over $5,000. You would be surprised how many people would donate used clothing and toys and even more surprised on how many people would be interested in purchasing used clothing and toys!
• “Puzzle Piece Fundraiser”: Your family, friends, coworkers, and strangers can sponsor puzzle pieces for $5, $10, or any amount that helps you reach you goal. Then, you can hang your completed puzzle in your child’s room as a constant reminder to all of the people who worked to bring your child home.

4. Employer Benefits: A growing number of companies and government agencies are offering adoption benefits to their employees. Benefits may include:

• adoption information and referral services
• legal expenses
• agency fees
• medical expenses
• post adoption counseling
• paid of unpaid leave time for the adoptive parent
• financial reimbursement

5. Tax Credit: Adoption federal tax credits may be available to defray some adoption costs. As of 2014 the Adoption Tax Credit is $13,190 per child.  Whether you adopt domestically or internationally you are eligible for a $13,190 tax credit the year you complete your adoption.  The credit amount can depend on a family income, whether the child has “special needs” and any other adoption benefits. Even now several states have enacted state tax credits for families adopting children from the public child welfare system in that state!

Putting the Pieces Together

The majority of people work their entire lives to prepare for starting a family one day. Whether you have a baby through traditional means or through adoption, there will always be an expense involved. Don’t let the cost of adopting effect your decision to follow your dreams in creating a family. Like you can see throughout this blog, there are so many resources out there that will help you adopt without emptying your bank accounts