2. Financing Adoption:
Innovative Funding
Solutions and How The
Church Can Respond
Rich Metcalfe

3. Adoption is all about God
Father to the fatherless, defender of
widows - this is God, whose dwelling is
holy. God places the lonely in families.
Psalm
68:5-6
In you the orphan finds mercy. Hosea
14:3

4. Learn to do good. Seek justice. Help the
oppressed. Defend the cause of orphans.
Fight for the rights of widows. Isaiah
1:17
Pure and genuine religion if the sight of
God the Father means caring for orphans
and widows in their distress and refusing
to let the world corrupt you. James
1:27
What about us?

5. Adoption is a picture of the Gospel
For as many as are led by the Spirit of God, these
are sons of God. For you did not receive the spirit
of bondage again to fear, but you received the
Spirit of adoption by whom we cry out, “Abba,
Father.” Romans 8:14-16
But when the fullness of time had come, God
sent forth His Son, born of a woman, born under
the law, to redeem those who were under the law,
that we might receive the adoption as sons.
Galatians 4:4-6

6. “For every animal of the forest is mine, and
the cattle on a thousand hills...” Psalm
50:10
“Therefore I tell you, do not worry about your
life, what you will eat or drink; or about your
body, what you will wear. Is not life more than
food, and the body more than clothes? Look at
the birds of the air; they do not sow or reap or
store away in barns, and yet your heavenly Father
feeds them. Are you not much more valuable
than they?” Matthew
6:25,26

7. One last thought…
you also, like living stones, are being built into
a spiritual house to be a holy priesthood,
offering spiritual sacrifices acceptable to God
through Jesus Christ.
But you are a chosen people, a royal
priesthood, a holy nation, God’s special
possession, that you may declare the praises of
Him who called you out of darkness into His
wonderful light.
1 Peter 2:5 and
9

9. A person who pleads for a cause
Advocate

10. someone who expounds or interprets
Exponent

11. person who uses the mind creatively
Intellectual

12. highly cultured or educated
Highbrow

13. So, when we fundraise we remember
that we are being an Advocate…
… a person who pleads for the cause
of orphans or expounds and explains
their plight by using the mind
creatively in an intellectually
appealing and highly cultured
manner!

14. Why is this important?...
The “Wyatt’s” of the world
are why it’s important!…

15. 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

16. Wyatt in
orphanage

17. Wyatt – in CA hospital after adoption

18. Rock
climbing?

19. A Father to the fatherless…
God truly…
“sets the
lonely into
families….”
- Psalm 68:5,6

20. Financial Need & Resources
 The Cost of the adoption - often the greatest challenge
 Overview of the Costs of Adoption
 Domestic Adoption – $8-35k +
 International Adoption - $25-$45k +

21. Adoption Funding Solution Tools
1. Direct Grants
2. Matching Grants
3. Interest-Free Loans
4. Fundraising Support (gifts, donations without
a grant/loan)

22. Direct Grants
 Direct gift to cover adoption expenses
 www.showhope.org & others

23. Adoption Matching Grants
 Matching Grants of up to $4,000/per child ($2,000-$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

24. 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!

25. Federal Adoption Tax Credit
 Currently there is a federal adoption tax credit
of up to $12,970 per child 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.

26. Interest-Free Loan
 Maximizes stewardship by utilizing Federal Adoption Tax Credit –
reducing the initial, upfront ‘cash-flow crunch’
 An Interest-Free Loan allows a family to capture $12,970 Federal
Tax Credit
 Couples sign a covenant agreement to repay
 Monthly or Annually
 (can use Fed Tax Credit to repay loan)
 The loan is repaid & then circulated to another family
 *Key Strategy: funds become self-sustaining, where the loan
repayments each month/year help to fund new families

28. How does an “Adoption Fund” fit with
your church mission/vision?
Meet Needs – Orphans find homes, Families are assisted, Churches
become more active
Share Jesus – Adoption provides an opportunity to share the Gospel
Encourage Others – We are able to put our faith in action, to develop
relationships and encourage & support others
Live out Loud – As we care for orphans and help with adoption, the
community around us see the body of Christ at work

29. 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!

30. What are you good at?
What do you enjoy?
 Construction

Teaching/Education
 Relationships
 Letter writing
 Entrepreneurship
 Accounting
 Medical
 Team building
 Technology
 Photography/videogr
aphy
 Running/Walking/Cyc
ling

31. Managing and Organization Skills

32. 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)

34. Other fund raising ideas:
- Spaghetti suppers / meals
- Family fun days
- Coffee / Shirt sales
- Skill / Gift auctions
- Yard sales
- Bingo Night
- 3 on 3 Basketball Tourney
- 147 Million Orphans www.147millionorphans.com
- …

35. 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

37. 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

39. 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

40. Other Tools & Ideas…
 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

41. While Jesus was in Bethany, reclining at the table in the home
of Simon the Leper, a woman came with an alabaster jar of very
expensive perfume, made of pure nard. She broke the jar and
poured the perfume on his head.
Some of those present were saying indignantly to one another,
“Why this waste of perfume? It could have been sold for more
than a year’s wages and the money given to the poor.” And they
rebuked her harshly.
“Leave her alone,” said Jesus. “Why are you bothering her?
She has done a beautiful thing to me. The poor you will always
have with you, and you can help them any time you want. But
you will not always have me. She did what she could. She
poured perfume on my body beforehand to prepare for my
burial. Truly I tell you, wherever the gospel is preached
throughout the world, what she has done will also be told, in
memory of her.” Mark 14:3-9

42. While Jesus was in Bethany, reclining at the table in the home
of Simon the Leper, a woman came with an alabaster jar of very
expensive perfume, made of pure nard. She broke the jar and
poured the perfume on his head.
Some of those present were saying indignantly to one another,
“Why this waste of perfume? It could have been sold for more
than a year’s wages and the money given to the poor.” And they
rebuked her harshly.
“Leave her alone,” said Jesus. “Why are you bothering her?
She has done a beautiful thing to me. The poor you will always
have with you, and you can help them any time you want. But
you will not always have me. She did what she could. She
poured perfume on my body beforehand to prepare for my
burial. Truly I tell you, wherever the gospel is preached
throughout the world, what she has done will also be told, in
memory of her.” Mark 14:3-9

43. I did what I could.
You did what you could.
We did what we could.
What if…

44. Q & A
Rich Metcalfe - rich@lifesongfororphans.org

46.  3 Options - in Creating an Adoption Fund
1. Church CREATES own 501(c)3 (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

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

48. Option #2 – Manage Fund in-house
 Setting Your Course
 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.

49. Option # 3 – Partnering with an
Organization to Administer the Fund

50. Benefits of using a Funding Partner
 Flexibility - church can be as involved or uninvolved as desired
 Speed - a fund can be established in 1-2 days
 Administratively easy – partner will facilitate the Fund and 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