Church Adoption Funds & Innovative Adoption Funding

More than just “Dollars & Cents”Andy Lehman

www.lifesongfororphans.org

Why is this important?...

The “Wyatt’s” of the world are why it’s important!…

Wyatt – orphaned in Lithuania Born with:

Cleft lip & palate

1 finger on each hand

2 toes on each foot

Severe hearing loss

Congenital heart defect

Wyatt @ orphanage

Wyatt – in CA hospital after adoption

rock climbing?

A Father to the fatherless…

God truly…

“sets the lonely into families….”

- Psalm 68:5,6

Naomi ~ before & after adoption…

The “Ransom”…

Cost is a hindrance – seems ‘financially impossible’

Adoption ‘ransom’ “…Son of Man gave His life a ransom for many” Matt 20:28

We are just instruments in God’s hands…God is “Jehovah-Jireh”!

Financial Need & Resources

Often the greatest challenge – cost of adoption

Overview of the Costs of Adoption How much will it cost? State Foster Care Domestic Adoption – $8-25k International Adoption - $20-$30k +

Adoption Funding Solution Tools

1. Direct Grants

2. Matching Grants

3. Interest-Free Loans

4. Fundraising Support (gifts, donations without a grant/loan)

Direct Grants

Direct gift to cover adoption expenses

www.showhope.org & Other Orgs

Adoption Matching Grants Matching Grants of up to $4,000/per child ($2500-$3,000 average)

Kingdom Activity: see adoption as “missions in reverse”…bringing the mission field home

LS offers a $1-for-$1 match – mobilizes the Body of Christ!

Lifesong provides ‘Adoption Support Raising’ kit E.g. Harlow family - $2500 Matching Grant – raised over $11K

Average Scenario: Matching Grant of $2,500 - mobilizes an additional $5,000 - average total grant funds for your adoption = $7500

*Key Strategy: mobilizes Body of Christ and leverages funds to bridge financial gap

Adoption Matching Grants – the process Opportunity to glorify God and mobilize the Body of Christ Invite others to invest in the Kingdom Overview of Process

Couple shares adoption journey & making needs known (i.e. letter, blog, Facebook, etc.)

Matching Grant $ amount – adds significant momentum Lifesong writes Letter of Support – (adds validity to grant/support raising) People can donate tax-deductible gifts to Lifesong ‘preferencing’ an

adoption if done appropriately RESULT!:

- Church body becomes engaged – not just financially, but prayerfully, etc. Funds are distributed to adoption agency on the child’s behalf

100% of donations allocated to adoption grants – no administrative costs!

Travor’s story

Federal Adoption Tax Credit Currently there is a refundable federal

adoption tax credit of up to $13,170 per child (for 2010-11) for unreimbursed “qualified adoption expenses.”

See IRS Tax Topic 607: Adoption Credit (www.irs.gov/taxtopics/tc607.html), which provides general information about the current federal adoption tax credit.

Note: Please be sure to consult your tax adviser for additional information and to understand how the federal adoption tax credit works and may impact you.

Interest-Free Loan

Maximizes stewardship by utilizing Federal Adoption Tax Credit – reducing the initial, upfront ‘cash-flow crunch’

Interest-Free Loans allows family to capture $13,000 Federal Tax Credit

Couples sign a covenant agreement to repay Monthly or Annually (can use Fed Tax Credit to repay loan)

The $13K is repaid & then circulated through the next family

*Key Strategy: funds become self-sustaining, where the loan repayments each month/year help to fund new families

Adoption Grants/Loans & Church Adoption Funds

How does an “Adoption Fund” fit with your church mission/vision? Evangelize the lost

Adoption is evangelism at its core...

Edify the saved Put faith in action; develop relationships/support

Minister to those in need Millions of orphans trapped b/c of financial barrier

Be a Conscience in the community As Church is involved, the community will see Jesus is alive and

working in His people (Matt 5:16)

3 Options - in Creating an Adoption Fund

1. Church CREATES own 501c3 (non-profit organization)

2. Church MANAGES own funds, donations, distributions, screening, qualifying, etc.

3. Church PARTNERS with a group like Lifesong for Orphans, ABBA Fund, etc. to administer the fund on behalf of the Church

www.showhope.org for more info on these options

Option #1 - Creating own 501(c)3 Organization

Option #2 – Manage Fund in-house Setting Your Course

8 Questions for creating grant guidelines What types of adoptions will we fund? Who is eligible? How far along in the process must families be in order to

apply? What percentage of the total adoption expenses will this

grant supply Who on the team will make the grant decisions? How will the funds be disbursed? What if any follow-up will be required from grant families?

Managing accounting, donation receipting, verifying qualified

expenses, funds disbursement, IRS guidelines, etc.

Option # 3 – Partnering with an Organization to Administer Fund

Top 3 common ‘barriers’ & their solutions… Barrier: Church staff “plate is already full” to administer fund

Solution: Lifesong can manage/facilitate the Fund & carry the administrative load on behalf of church, using mutually agreed upon criteria (reviewing applications, accounting, donor receipts, disbursing funds on behalf of adoption, etc.)

Barrier: Church feels uncomfortable/awkward approving/denying their own families (viewing financials, etc.) Solution: Lifesong can provide all the screening, reviewing, approving/denying as

a ‘partner’ on behalf of the church, using mutually agreed upon criteria for those decisions

Barrier: Adoption Fund is unfamiliar territory Solution: Lifesong has passion, and expertise in adoption funding processes,

maximize stewardship, use existing grant/loan procedures, IRS approved, ECFA approved (establishes financial integrity & avoids recreating the wheel)

Administration of Adoption Funds for Church at no cost to Church or Fund!

Benefits of using a Funding Partner Flexibility - church can be as involved or uninvolved as desired

Quickly - fund can be established in 1-2 days

Administratively easy – Alliance partner will facilitate the Fund, provide administration (at no cost to the Church or Fund)

Qualify/approve families (based on mutually agreed upon criteria) Administer the Funds, as agreed by Church/Lifesong partnership Disburse funds on behalf of adoption expenses Provide tax-deductible receipts, mailings, accounting records

Reports - full transparency in QuickBooks, and Fund Reports & Status given as often as Church desires

100% of Donations Allocated to Fund - no admin costs deducted

“Win-Win-Win” situation – Church is actively seen as engaged in adoption ministry; financial roadblock is removed for family; orphan child is adopted; with little/no admin burden for church

Synergy - We can do more together than sometimes can be done on our own

Iriving Bible Church (tapestry.irvingbible.org)

http://vimeo.com/4140197

L’ville area - Church Adoption Funds

Ukraine – a broken orphanage system

Register for Church Fund Webinar – March 18th!

Adoption Funding Tool

Help a WIDOW & ORPHAN!

Innovative tool to remove financial barrier A team fixes up a widow’s home Renovation provided for free to widow (donated labor & construction

materials) Sponsorship donations help fund adoption expenses

How does this help fund adoptions? 100% of donated sponsorships are used for adoption expenses Disbursed as Adoption Grant & Adoption Loan (thru Lifesong)

Video

http://vimeo.com/6483710

Real life example – Scott & Jennifer Adopting 1 yr old, cleft lip, India (already had 2

children in family)

Adoption Cost: $31,350 $3,300 - from savings $10,000 – withdrew from retirement fund $2,500 – adoption Matching Grant (from Lifesong) $12,906 - donated, result of Matching Grant $3,000 – adoption grant from Katlyn’s Fund $2,000 – unexpected property tax refund $300 - garage sale proceeds that friend held

Real life example – Tim & Susan Adopted 2 yr old, China (already had 5 children in family)

Adoption Cost: $25,050 $2,000 gift from their church $2,000 savings $2,000 sold personal items $3,000 Matching Grant (given by Lifesong) $9,716 donated, result of matching grant $1,000 result of giver after reading newsarticle $2,000 (2) anonymous givers $1,000 each $3,500 sister donated FF miles to pay for flights/airfare

Other Grant Organizations…

www.showhope.org www.lifesongfororphans.org (matching grants, direct grants) www.carolinespromise4u.org (North Carolina only) www.ggam.org (matching grants) www.micahfund.org (Midwest only – black & bi-racial adoptions) www.nafadopt.org www.achildwaits.org www.ourcreatorshope.com www.lydiafund.org (International Adoptions) www.katelynsfund.org www.hadassahshope.org www.cadmanfoundation.org

Other Tools & Ideas, cont’d

Tax Credits Federal (as mentioned previously) State

Employer Adoption Assistance A number of companies have adoption assistance

programs built into their benefits with some providing between $2,000--$10,000

The military provides $2,000 www.adoptionfriendlyworkplace.org

Q & A

Christi Ucherek – christi@lifesongfororphans.org/ 309-747-3558

Andy Lehman – andy@lifesongfororphans.org / 309-747-4515

@andy_lifesong

Lifesong for Orphans