Funding Adoption More than just  “Dollars & Cents” Rich Metcalfe www.lifesongfororphans.org
Why is this important?... <ul><li>The “ Wyatt’s” of the world are why it’s important!… </li></ul>
Wyatt – orphaned in Lithuania <ul><li>Born with: </li></ul><ul><ul><li>Cleft lip & palate </li></ul></ul><ul><ul><li>1 fin...
Wyatt in  orphanage
Wyatt – in CA hospital after adoption
Rock climbing?
A Father to the fatherless… <ul><li>God truly… </li></ul><ul><li>“ sets the lonely into families….”  </li></ul><ul><li>- P...
Financial Need & Resources <ul><li>Often the greatest challenge –  cost of adoption </li></ul><ul><li>Overview of the Cost...
Adoption Funding Solution Tools <ul><li>Direct Grants </li></ul><ul><li>Matching Grants </li></ul><ul><li>Interest-Free Lo...
Direct Grants <ul><li>Direct gift to cover adoption expenses </li></ul><ul><li>www.showhope.org  & others </li></ul>
Adoption Matching Grants <ul><li>Matching Grants of up to $4,000/per child ($2500-$3,000 average) </li></ul><ul><li>Kingdo...
Adoption Matching Grants  –  the process <ul><li>Opportunity to  glorify God  and  mobilize  the Body of Christ </li></ul>...
Federal Adoption Tax Credit <ul><li>Currently there is a  refundable  federal adoption tax credit of up to $13,170 per chi...
Interest-Free Loan <ul><li>Maximizes stewardship by utilizing Federal Adoption Tax Credit –  reducing the initial, upfront...
 
Adoption Grants/Loans  & Church Adoption Funds
How does an  “Adoption Fund”  fit with your church mission/vision? Meet Needs  – Orphans find homes, Families are assisted...
<ul><li>3 Options - in Creating an Adoption Fund  </li></ul><ul><ul><li>Church  CREATES  own 501(c)3 (non-profit organizat...
Option #1 - Creating own 501(c)3 Organization
Option #2 – Manage Fund in-house <ul><li>Setting Your Course  </li></ul><ul><ul><ul><ul><li>Questions for creating grant g...
Option # 3 – Partnering with an Organization to Administer the Fund
Top 3 common  ‘barriers’ &  their  solutions… <ul><li>Barrier:  Church staff  “plate is already full” to administer fund <...
Benefits of using a Funding Partner <ul><li>Flexibility  - church can be as involved or uninvolved as desired </li></ul><u...
Iriving Bible Church    (www.tapestryministry.org)
 
Register for  Church Fund Webinar  –  January 19th
Adoption Funding Tool <ul><li>Help a WIDOW & ORPHAN! </li></ul><ul><li>Innovative tool to remove financial barrier </li></...
<ul><li>Both Hands Video </li></ul><ul><li>Other fund raising ideas </li></ul><ul><li>Spag suppers </li></ul><ul><li>Famil...
Real life example – Scott & Jennifer <ul><li>Adopting 1 yr old, cleft lip, India  (already had 2 children in family) </li>...
 
Real life example – Tim & Susan <ul><li>Adopted 2 yr old, China  (already had 5 children in family) </li></ul><ul><ul><li>...
 
Other Grant Organizations… <ul><li>www.showhope.org </li></ul><ul><li>www.lifesongfororphans.org  (matching grants, direct...
Other Tools & Ideas, cont ’d <ul><ul><ul><li>Tax Credits </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Federal (as mentioned...
Q & A <ul><ul><ul><li>Rich Metcalfe -  rich@ lifesongfororphans.org   309-747-4528 </li></ul></ul></ul>Lifesong for Orphans
 
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Adoption funding Houston. ppt

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  • Other orgs – like Abba Fund, Katelyn’s Fund, Micah Fund, Carolines Promise
  • Our goal at Life International - glorify God by mobilizing the Body of Christ to come alongside believers who have been called by God to care for orphans by adopting one or more orphans into their family.
  • Evangelize the lost: Adoption is evangelism at its core…Bringing the mission field home, where children are loved, cared for, and discipled to know Jesus Christ as their Savior. Edify the saved: Adoption Fund challenges, encourages, and enables Believers to put their faith in action, by stepping out in faith to adopt (fulfilling God ’s commands in scripture). The process also provides an opportunity for couples to develop relationships with other Christians as they seek prayer and financial support. Minister to those in need: There are millions of children waiting for forever families who would like to adopt them, but just can ’t because of the financial barrier. By helping to reduce that barrier we are helping to rescue those children who are trapped in the cycle of orphan life. Be a Conscience in the community: As the Church becomes obedient to God ’s commands concerning the fatherless, the community will see Jesus Christ is alive and working in the lives of His people to care for those children who can’t care for themselves. “As Christians we are often known for what we are against, but the world doesn’t know what we are for. Jesus said ‘Let your light shine before men, that they may see your good deeds and praise your Father in heaven” – FamilyLife’s Hope for Orphans (Matt 5:16)
  • Adoption funding Houston. ppt

    1. 2. Funding Adoption More than just “Dollars & Cents” Rich Metcalfe www.lifesongfororphans.org
    2. 3. Why is this important?... <ul><li>The “ Wyatt’s” of the world are why it’s important!… </li></ul>
    3. 4. Wyatt – orphaned in Lithuania <ul><li>Born with: </li></ul><ul><ul><li>Cleft lip & palate </li></ul></ul><ul><ul><li>1 finger on each hand </li></ul></ul><ul><ul><li>2 toes on each foot </li></ul></ul><ul><ul><li>Severe hearing loss </li></ul></ul><ul><ul><li>Congenital heart defect </li></ul></ul>
    4. 5. Wyatt in orphanage
    5. 6. Wyatt – in CA hospital after adoption
    6. 7. Rock climbing?
    7. 8. A Father to the fatherless… <ul><li>God truly… </li></ul><ul><li>“ sets the lonely into families….” </li></ul><ul><li>- Psalm 68:5,6 </li></ul>
    8. 9. Financial Need & Resources <ul><li>Often the greatest challenge – cost of adoption </li></ul><ul><li>Overview of the Costs of Adoption </li></ul><ul><ul><ul><li>Domestic Adoption – $8-25k </li></ul></ul></ul><ul><ul><ul><li>International Adoption - $20-$40k + </li></ul></ul></ul>
    9. 10. Adoption Funding Solution Tools <ul><li>Direct Grants </li></ul><ul><li>Matching Grants </li></ul><ul><li>Interest-Free Loans </li></ul><ul><li>Fundraising Support (gifts, donations without a grant/loan) </li></ul>
    10. 11. Direct Grants <ul><li>Direct gift to cover adoption expenses </li></ul><ul><li>www.showhope.org & others </li></ul>
    11. 12. Adoption Matching Grants <ul><li>Matching Grants of up to $4,000/per child ($2500-$3,000 average) </li></ul><ul><li>Kingdom Activity: see adoption as “missions in reverse”… bringing the mission field home </li></ul><ul><li>LS offers a $1-for-$1 match – mobilizes the Body of Christ! </li></ul><ul><li>Lifesong provides ‘Adoption Support Raising’ kit </li></ul><ul><ul><li>E.g. Harlow family - $2500 Matching Grant – raised over $11K </li></ul></ul><ul><li>Average Scenario: Matching Grant of $2,500 - mobilizes an additional $5,000 - average total grant funds for your adoption = $7500 </li></ul><ul><li>*Key Strategy: mobilizes Body of Christ and leverages funds to bridge financial gap </li></ul>
    12. 13. Adoption Matching Grants – the process <ul><li>Opportunity to glorify God and mobilize the Body of Christ </li></ul><ul><li>Invite others to invest in the Kingdom </li></ul><ul><li>Overview of Process </li></ul><ul><ul><li>Couple shares adoption journey & making needs known (i.e. letter, blog, Facebook, etc.) </li></ul></ul><ul><ul><li>Matching Grant $ amount – adds significant momentum </li></ul></ul><ul><ul><li>Lifesong writes Letter of Support – (adds validity to grant/support raising) </li></ul></ul><ul><ul><li>People can donate tax-deductible gifts to Lifesong ‘preferencing’ an adoption if done appropriately </li></ul></ul><ul><ul><li>RESULT!: </li></ul></ul><ul><ul><ul><li>- Church body becomes engaged – not just financially, but prayerfully, etc. </li></ul></ul></ul><ul><ul><li>Funds are distributed to adoption agency on the child’ s behalf </li></ul></ul><ul><ul><ul><li>100% of donations allocated to adoption grants – no administrative costs! </li></ul></ul></ul>
    13. 14. Federal Adoption Tax Credit <ul><li>Currently there is a refundable federal adoption tax credit of up to $13,170 per child (thru 2011) for unreimbursed “qualified adoption expenses.” </li></ul><ul><ul><ul><ul><li>See IRS Tax Topic 607: Adoption Credit (www.irs.gov/taxtopics/tc607.html), which provides general information about the current federal adoption tax credit. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>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. </li></ul></ul></ul></ul>
    14. 15. Interest-Free Loan <ul><li>Maximizes stewardship by utilizing Federal Adoption Tax Credit – reducing the initial, upfront ‘cash-flow crunch’ </li></ul><ul><li>An Interest-Free Loan allows a family to capture $13,170 Federal Tax Credit </li></ul><ul><li>Couples sign a covenant agreement to repay </li></ul><ul><ul><ul><li>Monthly or Annually </li></ul></ul></ul><ul><ul><ul><li>(can use Fed Tax Credit to repay loan) </li></ul></ul></ul><ul><li>The loan is repaid & then circulated to another family </li></ul><ul><li>*Key Strategy: funds become self-sustaining , where the loan repayments each month/year help to fund new families </li></ul>
    15. 17. Adoption Grants/Loans & Church Adoption Funds
    16. 18. 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
    17. 19. <ul><li>3 Options - in Creating an Adoption Fund </li></ul><ul><ul><li>Church CREATES own 501(c)3 (non-profit organization) </li></ul></ul><ul><ul><li>Church MANAGES own funds, donations, distributions, screening, qualifying, etc. </li></ul></ul><ul><ul><li>Church PARTNERS with a group like Lifesong for Orphans, ABBA Fund, etc. to administer the fund on behalf of the Church </li></ul></ul><ul><ul><li>www.showhope.org for more info on these options </li></ul></ul>
    18. 20. Option #1 - Creating own 501(c)3 Organization
    19. 21. Option #2 – Manage Fund in-house <ul><li>Setting Your Course </li></ul><ul><ul><ul><ul><li>Questions for creating grant guidelines </li></ul></ul></ul></ul><ul><ul><ul><ul><li>What types of adoptions will we fund? Who is eligible? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>How far along in the process must families be in order to apply? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>What percentage of the total adoption expenses will this grant supply? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Who on the team will make the grant decisions? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>How will the funds be disbursed? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>What if any follow-up will be required from grant families? </li></ul></ul></ul></ul><ul><li>Managing </li></ul><ul><ul><ul><ul><li>accounting, donation receipting, verifying qualified expenses, funds disbursement, IRS guidelines, etc. </li></ul></ul></ul></ul>
    20. 22. Option # 3 – Partnering with an Organization to Administer the Fund
    21. 23. Top 3 common ‘barriers’ & their solutions… <ul><li>Barrier: Church staff “plate is already full” to administer fund </li></ul><ul><ul><li>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.) </li></ul></ul><ul><li>Barrier: Church feels uncomfortable/awkward approving/denying their own families (viewing financials, etc.) </li></ul><ul><ul><li>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 </li></ul></ul><ul><li>Barrier: Adoption Fund is unfamiliar territory </li></ul><ul><ul><li>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) </li></ul></ul>Administration of Adoption Funds for Church at no cost to Church or Fund!
    22. 24. Benefits of using a Funding Partner <ul><li>Flexibility - church can be as involved or uninvolved as desired </li></ul><ul><li>Speed - a fund can be established in 1-2 days </li></ul><ul><li>Administratively easy – partner will facilitate the Fund and provide administration (at no cost to the Church or Fund) </li></ul><ul><ul><li>Qualify/approve families (based on mutually agreed upon criteria) </li></ul></ul><ul><ul><li>Administer the Funds, as agreed by Church/Lifesong partnership </li></ul></ul><ul><ul><li>Disburse funds on behalf of adoption expenses </li></ul></ul><ul><ul><li>Provide tax-deductible receipts, mailings, accounting records </li></ul></ul><ul><li>Reports - full transparency in QuickBooks, and Fund Reports & Status given as often as Church desires </li></ul><ul><li>100% of Donations Allocated to Fund - no admin costs deducted </li></ul><ul><li>“ 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 </li></ul><ul><li>Synergy - We can do more together than sometimes can be done on our own </li></ul>
    23. 25. Iriving Bible Church (www.tapestryministry.org)
    24. 27. Register for Church Fund Webinar – January 19th
    25. 28. Adoption Funding Tool <ul><li>Help a WIDOW & ORPHAN! </li></ul><ul><li>Innovative tool to remove financial barrier </li></ul><ul><ul><ul><li>A team fixes up a widow ’s home </li></ul></ul></ul><ul><ul><ul><li>Renovation provided for free to widow (donated labor & construction materials) </li></ul></ul></ul><ul><ul><ul><li>Sponsorship donations help fund adoption expenses </li></ul></ul></ul><ul><li>How does this help fund adoptions? </li></ul><ul><ul><ul><li>100% of donated sponsorships are used for adoption expenses </li></ul></ul></ul><ul><ul><ul><li>Disbursed as Adoption Grant & Adoption Loan (thru Lifesong) </li></ul></ul></ul>
    26. 29. <ul><li>Both Hands Video </li></ul><ul><li>Other fund raising ideas </li></ul><ul><li>Spag suppers </li></ul><ul><li>Family fun days </li></ul><ul><li>Coffee / Shirt sales </li></ul><ul><li>Skill / gift auctions </li></ul><ul><li>Yard sales </li></ul><ul><li>Bingo Night </li></ul><ul><li>3 on 3 Tourney </li></ul><ul><li>… </li></ul>
    27. 30. Real life example – Scott & Jennifer <ul><li>Adopting 1 yr old, cleft lip, India (already had 2 children in family) </li></ul><ul><ul><li>Adoption Cost: $31,350 </li></ul></ul><ul><ul><ul><ul><li>$3,300 - from savings </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$10,000 – withdrew from retirement fund </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$2,500 – adoption Matching Grant (from Lifesong) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$12,906 - donated, result of Matching Grant </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$3,000 – adoption grant from Katlyn ’s Fund </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$2,000 – unexpected property tax refund </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$300 - garage sale proceeds that friend held </li></ul></ul></ul></ul>
    28. 32. Real life example – Tim & Susan <ul><li>Adopted 2 yr old, China (already had 5 children in family) </li></ul><ul><ul><li>Adoption Cost: $25,050 </li></ul></ul><ul><ul><ul><ul><li>$2,000 gift from their church </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$2,000 savings </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$2,000 sold personal items </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$3,000 Matching Grant (given by Lifesong) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$9,716 donated, result of matching grant </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$1,000 result of giver after reading newsarticle </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$2,000 (2) anonymous givers $1,000 each </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$3,500 sister donated FF miles to pay for flights/airfare </li></ul></ul></ul></ul>
    29. 34. Other Grant Organizations… <ul><li>www.showhope.org </li></ul><ul><li>www.lifesongfororphans.org (matching grants, direct grants) </li></ul><ul><li>www.carolinespromise4u.org (North Carolina only) </li></ul><ul><li>www.ggam.org (matching grants) </li></ul><ul><li>www.micahfund.org (Midwest only – black & bi-racial adoptions) </li></ul><ul><li>www.nafadopt.org </li></ul><ul><li>www.achildwaits.org </li></ul><ul><li>www.ourcreatorshope.com </li></ul><ul><li>www.lydiafund.org (International Adoptions) </li></ul><ul><li>www.katelynsfund.org </li></ul><ul><li>www.hadassahshope.org </li></ul><ul><li>www.cadmanfoundation.org </li></ul>
    30. 35. Other Tools & Ideas, cont ’d <ul><ul><ul><li>Tax Credits </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Federal (as mentioned previously) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>State </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Employer Adoption Assistance </li></ul></ul></ul><ul><ul><ul><ul><ul><li>A number of companies have adoption assistance programs built into their benefits with some providing between $2,000--$10,000 </li></ul></ul></ul></ul></ul><ul><ul><ul><li>The military provides $2,000 </li></ul></ul></ul><ul><ul><ul><ul><ul><li>www.adoptionfriendlyworkplace.org </li></ul></ul></ul></ul></ul>
    31. 36. Q & A <ul><ul><ul><li>Rich Metcalfe - rich@ lifesongfororphans.org 309-747-4528 </li></ul></ul></ul>Lifesong for Orphans
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