adoption funding webinar (christian alliance for orphans)
TRANSCRIPT
“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 theengagement of the local Church to provide loving careand/or homes for the fatherless.
A Variety of Ways to Serve
Increase Awareness
Educate
Provide OpportunityTo Serve
FamilyRecruitment
CommitmentTo Support Foster/AdoptiveFamilies
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.
Our ApproachChristian 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
1. Church CREATES own 501c3 (non-profit organization)
2. Church MANAGES own funds, donations, distributions, screening, qualifying, etc.
3. 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/6483710www.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 protected]/ 502-759-3681
Wendy Cosby, Show Hope [email protected]/615-550-5600
Direct Grants, Church Fund guides Dwain Gullion, ABBA Fund
[email protected] / 336-345-2369 Covenant Loans, Administer Church Funds
Andy Lehman, Lifesong for Orphans [email protected] / 309-747-4515
Covenant Loans, Matching Grants, Administer Church Funds
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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.