Paying for Adoption in Canada
Loans, Tax Credits, Grants and Employer Benefits for Adopting
Apr 3, 2009
Many Canadians hoping to adopt feel limited in their options because of the costs incurred during the adoption process. International adoptions range from $15,000 to $40,000 and private adoptions typically cost between $10,000 and $20,000.
If hoping to adopt more than one child, Canadians need to explore their financial possibilities as part of the planning process. Aside from personal savings, there are some options to help Canadians pay for their adoptions.
Adoption Line of Credits and Loans
Most banks allow lines of credit to be used for almost anything, including adoption expenses. For people who have a good credit rating, it is straightforward to get a regular line of credit and homeowners may be eligible for a home equity line of credit.
Bank loans are another option available to adoptive parents, with various borrowing options and interest rates. The National Bank of Canada has an adoption loan for international adoption expenses. As of January 2009, their interest rates were prime plus .75% on loans between $10,000 and $20,000.
Federal Tax Credit for Adoptive Families
Canadians are able to claim a federal tax credit for adoption expenses up to $10,643 in the year that their child’s adoption was finalized. According to the Canada Revenue Agency eligible expenses for the adoption tax credit include:
- fees paid to an adoption agency licensed by a provincial or territorial government
- court costs and legal and administrative expenses related to an adoption order in respect of that child
- reasonable and necessary travel and living expenses of the child and the adoptive parents
- document translation fees
- mandatory fees paid to a foreign institution
- mandatory expenses paid in respect of the immigration of that child
- any other reasonable expenses required by a provincial or territorial government or an adoption agency
In the province of Quebec, Canadians are eligible to claim a refundable tax credit for adoption expenses that is equal to 50% of the total eligible cost of adoption.
Workplace Benefits for Adopting Employees
Some employers are able to offer employee benefits such as monetary support to help cover adoption costs and paid leave with salary top-up when an adopted child comes home.
Both Adoptive Families Magazine and the Dave Thomas Foundation for Adoption have annual lists of the top adoption-friendly companies in North America and many Canadian companies are beginning to offer adoption benefits to their employees. Here are some companies that have been recently recognized:
- AstraZeneca International
- Capital One Financial Corporation
- Carswell
- HSBC Bank Canada
- Merrill Lynch
- Monsanto Canada Inc.
- PricewaterhouseCoopers
- Wendy’s International Inc.
The Dave Thomas Foundation for Adoption also has a package that can be sent to employers to encourage companies to offer benefits to employees adopting children.
Grants from Non-Profit Adoption Organizations
Many private adoption agencies receive charitable donations from the community and do event fundraising to help offset the costs of the adoption process.
Orphan’s Hope is the first Canadian charity dedicated to finding homes for orphaned children from around the world. The organization gives financial grants of up to $10,000 to families meeting the income cut-off to adopt a child internationally.
Adopting a child internationally or privately is expensive and can affect the financial plans an adopting family makes. Fortunately for Canadians, there are bank loans, tax credits, company benefits and grants available specifically for adoption purposes.
References
Adoptive Families Magazine website
Canada Revenue Agency website
Dave Thomas Foundation website
Maclean’s.ca website
Ministère du Revenu du Québec website
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