Adoption Funding Webinar (Christian Alliance for Orphans)

“ The Financial Challenge of Adoption and How the Local Church Can Respond” Equipping churches to help adoptive families overcome one of the biggest barriers to adoption: money Host Church: Southeast Christian Church Presenter: Darren Washausen, Southeast Christian Church/ Orphan Care Alliance Andy Lehman, Lifesong for Orphans Dwain Gullion, Abba Fund Wendy Cosby, Show Hope Date: Wednesday, October 27, 2010 Time: 2:00 PM Eastern Alliance Webinar Series The Christian Alliance for Orphans Webinar Series is designed to help individuals like you create and grow effective adoption, foster care and global orphan ministry in local churches. Welcome to…

Overview Serving the fatherless, one need at a time

Who is Orphan Care Alliance?
The Orphan Care Alliance (OCA) is a network of families, churches, and agencies that stand together with one voice, one heart determined to change the world one child at a time.
Our Mission is to equip Christian families through the engagement of the local Church to provide loving care and/or homes for the fatherless.

A Variety of Ways to Serve Serving the fatherless is not just for those who can foster or adopt. All are called to serve the fatherless and there are many ways to do so. Increase Awareness Educate Provide Opportunity To Serve Family Recruitment Commitment To Support Foster/Adoptive Families

Our Approach
Christian Family Advocacy Ministry
Adoption Seminars
Church Sponsorship & Support
Family Support Ministry
Financial Resources
Pre/Post Adoption Support
Dignity Bags & Bins
The Resource Store
Mentoring Ministry
Breakthrough Tutoring
Age-Out Life Coaching Program
Young Mom’s Program
Career Connect

Community/Church Adoption Funds

Biblical Perspective
I. God’s Pull
Romans 8:15-17: “For you did not receive the spirit of slavery to fall back into fear, but you have received the Spirit of adoption as sons, by whom we cry, “Abba! Father!” The Spirit himself bears witness with our spirit that we are children of God, and if children, then heirs—heirs of God and fellow heirs with Christ.”
II. God’s Promises
2 Corinthians 9:8 : “God will generously provide all you need.”
Philippians 4:19 : “This same God who takes care of me will supply all your needs from his glorious riches, which have been given to us in Christ Jesus.”
Matthew 7:11: Jesus said, “If you sinful people know how to give good gifts to your children, how much more will your heavenly Father give good gifts to those who ask him”
III. God’s Provision
Romans 8:32 “He who did not spare his own Son but gave him up for us all, how will he not also with him graciously give us all things?”

Financial Need & Resources
Often the greatest challenge – cost of adoption
Adoption ‘ ransom’
“… Son of Man gave His life a ransom for many” Matt 20:28
Overview of the Costs of Adoption
How much will it cost?
State Foster Care
Domestic Adoption – $8-25k
International Adoption - $20-$35k +
All tools, ideas & organizations are just instruments in God’s hands…
God is “Jehovah-Jireh ”!

Direct Grants
Directly awarded to family for adoption expenses
Given without repayment or fundraising
Mirrors grace freely given to us
Grants range from $2,000-$10,000+
Disbursed directly to adoption agency
Based on financial need

Adoption Matching Grants
Matching Grants of up to $4,000/per child ($1-for-$1 match)
Kingdom activity: see adoption as “missions in reverse”… bringing the mission field home. (involves family, church, community)
Families given “turn-key” support raising kit
Biblical act of making needs known (Facebook, blog, letter, etc.)
Others donate tax-deductible gifts
e.g. Harlow family - $2500 Matching Grant – raised over $11K
100% of donations to adoption expenses (no admin fee deducted)
Church, family friends become engaged financially & prayerfully
Average Scenario: Matching Grant of $2,500 - mobilizes an additional $5,000 - average total grant funds for your adoption = $7500

Federal Adoption Tax Credit
Currently there is a 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
Reduces initial, upfront ‘cash-flow crunch’
Maximizes stewardship by allowing family to capture $13k Federal Adoption Tax Credit
Couples sign a covenant agreement to repay
Monthly or Annually
(can use Fed Adoption Tax Credit to repay loan)
The $13k is repaid & then circulated through the next family
Funds can become self-perpetuating, where loan repayments each month/year can help fund NEW families

Other Helps
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

How does “Adoption Fund” fit with 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
Church CREATES own 501c3 (non-profit organization)
Church MANAGES own funds, donations, distributions, screening, qualifying, etc.
Church PARTNERS with an organization who will administer/facilitate the fund on behalf of the Church

Option #1: Creating own 501(c)3 organization / the BENEFITS
Building from ground up gives total ownership in vision, opportunity & rewards
Empowers lay people to get involved / but staff doesn’t administer
Spins off an entity that can grow nearly unlimited ways
Gives church financial separation between Fund & money
Freedom to grow; not dependent/drain on church
Allows the 501c3 responsibility to follow tax laws

Option #1 - Creating own 501(c)3 organization / the PROCESS

Option #2 – Manage Fund in-house / the BENEFITS
Gives the church complete ownership
Gets church clergy, staff, and decision makers involved
Church an use the benevolence fund to avoid 501c3
Funds can be from inside or outside church budget
Funds are maintained as part of the church budget
Step-by-step instructions & case studies available
Church is not dependent on third party

Option #2 – Manage Fund in-house / the PROCESS
Build your team / Choose the right model
Create your grant & loan guidelines
What types of adoptions will we fund? Who is eligible?
What percentage of the total adoption expenses will this grant supply
Who on the team will make the grant decisions?
Managing
Accounting, donation receipting, verifying qualified expenses, funds disbursement, IRS guidelines, etc.
Example/Sample:
Step-by-Step Guide to start in-house fund: www.showhope.org/fund
Lake Pointe Church – www.lpcadoption.org

Option # 3 – Church uses PARTNER to facilitate/ BENEFITS
Partner can manage/facilitate the Fund & carry administrative load on behalf of church
All screening, reviewing, approving/denying as partner of the church (agreed criteria)
All accounting, receipting, disbursement of funds to approved agencies/expenses
Flexible – church can be as involved as desired
Quick – funds can be set up in 1-2 days
Branding – Church Fund is “branded” as Church desires
Reports – monthly financial reports given to Church (balance, disbursements, etc.)
No Cost – no administrative fee / 100% of donations to Fund

Option # 3 – Church uses PARTNER to facilitate/ PROCESS
Church & Partner have initial conference call to set up Fund (Q &A)
Church shares criteria/preferences for making decisions
Members of Church apply to Church Fund on church-branded application
Applications come to Partner, who processes application as Church desires
Grant/Loan decision make in conjunction w/ Church
Partner handles all disbursements & expenses
ABBA - www.abbafund.org/churchadoptionfunds.htm
Lifesong - www.lifesongfororphans.org/adoptFund.html
Orphan Care Alliance www.orphancarealliance.org
Iriving Bible Church (Tapestry) - www.tapestry.irvingbible.org

Community/Church Adoption Funds

“ Both Hands” Adoption Funding
One for the WIDOW & One for the 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
http://vimeo.com/6483710
www.bothhandsfoundation.org

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 – adoption loan
$2,500 – adoption matching grant
$12,906 - donated, result of matching grant
$3,000 – direct grant from organization
$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
$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

Some Grant/Loan Organizations…
abbafund.org
achildwaits.org
cadmanfoundation.org
carolinespromise4u.org
ggam.org
hadassahshope.org
katelynsfund.org
lifesongfororphans.org
lydiafund.org
micahfund.org
nafadopt.org
ourcreatorshope.com
pathwaysforlittlefeet.org
showhope.org

Q & A
Darren Washausen, Orphan Care Alliance (Louisville area churches) [email_address] / 502-759-3681
Wendy Cosby , Show Hope [email_address] / 615-550-5600
Direct Grants, Church Fund guides
Dwain Gullion, ABBA Fund [email_address] / 336-345-2369
Covenant Loans, Administer Church Funds
Andy Lehman , Lifesong for Orphans [email_address] / 309-747-4515
Covenant Loans, Matching Grants, Administer Church Funds

To ask a question: U se the “Questions” bar on your webinar dashboard. Alliance Webinar Series The Christian Alliance for Orphans Webinar Series is designed to help individuals like you create and grow effective adoption, foster care and global orphan ministry in local churches. Save the date for next month’s webinar… Starting and Growing a Church-Based Orphan Ministry Explore the significant decisions, challenges and solutions involved in starting an adoption, foster and/or global orphan care ministry as a part of your church. Date: Thursday, November 18 th Time: 2:00 PM Eastern

Adoption Funding Webinar (Christian Alliance for Orphans)

by Andy Lehman on Oct 19, 2010

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Adoption Funding Webinar (Christian Alliance for Orphans) — Presentation Transcript