For Hopeful Adoptive Families
Adoption Grants, Tax Credits, and Financial Assistance
Adoption is a significant financial commitment — but very few families pay for it from savings alone. Between non-profit grants, the federal adoption tax credit, employer benefits, military reimbursement, and fundraising, most families assemble their adoption budget from several sources at once.
This page walks through each option and how families commonly combine them. For what adoption actually costs and why, start with our full cost guide.
1. Federal Adoption Tax Credit
The federal adoption tax credit is the single largest source of adoption cost relief for most families — worth over $17,000 per child in recent tax years, adjusted annually for inflation. You claim it on IRS Form 8839 in the tax year your adoption is finalized, for qualified expenses like agency fees, legal costs, and travel.
Two details worth knowing: unused credit has historically carried forward for up to five years, and recent federal changes made a portion of the credit refundable for qualifying families. The rules shift year to year, so treat this as a planning starting point and confirm current figures with your tax professional.
2. Adoption Grants
Non-profit adoption grants are money you never repay, and they're a major funding source for many families. Nearly all of them require an approved home study first — so the smartest time to apply is immediately after home study approval, while you wait to match. Commonly used programs:
- Gift of Adoption Fund — Need-based grants awarded monthly; open to families with a completed home study.
- Show Hope — Adoption Aid grants with quarterly application deadlines.
- National Adoption Foundation — Grants plus adoption financing programs for approved families.
- Help Us Adopt — Larger grants awarded twice a year, with no religious requirement.
- A Child Waits Foundation — Grants and low-interest adoption loans for families near the finish line.
We link to these programs as a starting point. A Act of Love is not affiliated with them and doesn't guarantee any outcome.
3. Employer Adoption Benefits
Many employers now offer adoption benefits — typically a lump-sum reimbursement of several thousand dollars, paid parental leave that applies to adoptive parents, or both. Check your benefits handbook or ask HR directly; this is one of the most overlooked sources of adoption funding. The Dave Thomas Foundation for Adoption publishes an annual list of adoption-friendly workplaces if you're curious how your employer compares.
4. Military Families
Active-duty service members can be reimbursed for qualified adoption expenses — up to $2,000 per child per calendar year under the Department of Defense adoption reimbursement program — in addition to the federal tax credit and adoption leave. Your installation's legal assistance office or Military OneSource can walk you through the paperwork.
5. Adoption Loans and Fundraising
Some lenders offer dedicated adoption loans, and home-equity or personal loans can also bridge timing gaps — for example, covering placement costs months before the tax credit arrives. Borrow last, after grants and benefits, and speak with a financial advisor about what fits your situation.
Community fundraising is also more common — and more warmly received — than most families expect. Garage sales, dinners, and online campaigns don't just raise money; they invite the people who love you into your adoption story early.
How Families Commonly Stack These
A typical plan looks like this: apply to two or three grant programs right after home study approval, claim the employer reimbursement at placement, and claim the federal tax credit at finalization. Together, those three sources routinely offset a large share of total adoption costs — before loans or fundraising ever enter the picture.
Ohio Adoption Grant
Ohio residents: the Ohio Adoption Grant Program provides per-child reimbursements for adoptive families. Eligibility and amounts vary by year.
Don't Let the Sticker Price Decide for You
Families of ordinary means adopt every day — teachers, service members, small-business owners. The number that matters isn't the total cost; it's your out-of-pocket cost after grants, benefits, and the tax credit. Talk with us about your situation and we'll give you a personalized, no-pressure picture of what your path could look like.
Adoption Financial Assistance FAQ
When should we apply for adoption grants?+
Most grant programs require a completed, approved home study before you apply, so the best window is right after home study approval — before a match. Applications can take weeks to months to review, and many programs have quarterly deadlines, so starting early matters.
Is the federal adoption tax credit refundable?+
The credit has historically been non-refundable — it offsets federal tax you owe, with unused amounts carrying forward up to five years. Recent federal changes have made a portion of the credit refundable for qualifying families. Because the rules and amounts adjust each year, confirm the current figures with your tax professional before you plan around them.
Can we combine grants, employer benefits, and the tax credit?+
Yes — and most families do. A typical plan stacks an employer reimbursement, one or two grants, and the federal tax credit at finalization, which together can offset a substantial share of total adoption costs. Just track what each program requires: some grants reduce awards based on other funding you receive.
How much does adoption cost with A Act of Love?+
Costs vary based on your situation, so we don't publish a one-size-fits-all number. Contact us for a personalized estimate, and see our full cost guide for how domestic infant adoption fees typically break down.
Free, No-Obligation
Get Your Free Application Packet
Tell us a little about your family and we'll send your application packet, everything you need to begin. A member of our team follows up within 24 hours. No pressure.