Ways to Raise Money for Adoption

Depositphotos_17692715_XL(1)The cost of private adoption can vary considerably depending on a number of factors. The cost has been estimated at anywhere between $15,000 and $60,000. This assumes a private domestic adoption. Costs associated with an international adoption can sometimes be much higher.

Of course, adoptive families have the opportunity to control some costs by looking at a variety of options for agencies, adoption attorneys, and other services. Even so, an adoption is a significant financial commitment that can take some planning.

Although most families do not have this amount of money at the ready, there are several financing strategies that can put adoption within reach. Understanding your options will help you get started on the right foot, so you can better estimate how much time you will need to prepare yourself financially.

Some helpful approaches include:

  1. Fundraising

With the world of social media at your fingertips, there are many different fundraising venues to choose from. You can inform friends and family about your plans on a mainstream platform like Facebook, with video blogging on YouTube, and in many other ways.

Crowdfunding platforms like GoFundMe have also been known to foster successful campaigns. There’s an increasingly large number of crowdfunding websites to work with, so make sure you pick one that allows fundraising for adoption and provides favorable terms, such as low processing fees.

  1. Refinance Your Home

Refinancing can be an excellent decision depending on the prevailing interest rates. If you refinance, you “trade in” your old mortgage for a new one that can sometimes offer better terms. Of course, you get all the facts from your mortgage lender in advance, so you know whether it is a good deal or not.

When you refinance, your lender pays off your existing mortgage with a new one. This gives you the chance to move on to a new mortgage lender if you are not satisfied with your current one. Lowered monthly payments provide you with additional savings opportunities for adoption or you can take cash out at the refinance settlement to set aside for the adoption costs.

  1. Seek out Grants

In contrast to loans, grants are funds you are never required to pay back. Grant amounts are usually on the smaller side and require a significant amount of time and effort for applications. That said, they are often available with no strings attached and are a great way to bolster your growing adoption fund.

There are so many opportunities for grants that it would be impossible to list them all. In addition to grant money provided by nationwide nonprofits and the federal government, you should also be on the lookout for grants sponsored by the state or organizations in your local community.

  1. Borrow Against Your 401(k)

If you are significantly vested in an employer-sponsored 401(k) retirement plan, it can open doors for your long-term financing needs. Exactly how much of your funds may be available is determined in part by employer policies. Even so, you could have access to as much as 50% of your savings.

The maximum amount of 401(k) funds you can borrow at any given time is capped, usually at $50,000 in a 12-month period. This is a standard borrowing agreement that will require you to pay back the funds. It also has a negative impact on the equity that helps you save up for retirement in the long run.

With all that in mind, it is usually best to borrow against a 401(k) only if you have a concrete plan to fully restore the equity within the short term.

A trusted local adoption attorney can help you control costs by avoiding legal pitfalls throughout the process. Contact Jennifer Fairfax today to find out more.

“I believe in working with each of my clients—in support of their family dynamic—to make the dreams of parenthood a reality. Whether you are single or married; or gay; a step-parent, a surrogate or intended parent or a child of adoption, it is my mission to serve as your advocate. With a dedication to the ethical and sensitive nature of each situation, I will help you understand the laws within Maryland or Washington, DC for adoption or surrogacy, and pledge to be your partner throughout the journey.” - Jennifer Fairfax

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