Adoption Grants and Loans from Forever Family Ministries

What is a ‘covenant loan’?

FFM’s adoption loan is not the same as a traditional, legally binding, promissory note used by lenders. Instead, we ask the couple to enter into a “covenant agreement” whereby they covenant to reimburse FFM in monthly or annual payments as mutually agreed upon. The covenant commitment is then between the couple, FFM and God. The couple agrees to exercise financial stewardship responsibility to both FFM and to God, to use funds that God provides to them to reimburse FFM for the financial assistance that God graciously provided.

How are the amounts of adoption grants and loans and their repayment terms determinated?

Loan amounts are up to $12,000 and the exact amount is based on your financial need and FFM’s available funds. Repayment terms are determined on an individual basis and repayments are made on a monthly and/or annual basis.

Do we have to use the money we receive from our Federal Adoption Tax Credit to reimburse FFM?

It is agreed that you will reimburse FFM the amount of the Federal adoption tax credit utilized on your Federal income tax return until the Covenant Loan Amount is paid in full. The annual payment will be made (60) days after filing of the income tax return for any year.

What if we experience financial hardship during our repayment period?

Although you need to honor your covenant agreement to repay the assistance you received, FFM will work with you through your financial hardship.

Are funds paid directly to the family or directly to the adoption agency?

For payments owed to the agency, FFM will make payments directly to the agency whenever possible. We can reimburse families upon receipt of documentation of the amounts needed.

Why use Interest-Free loans?

A key strategy for the interest-free loan program is that it would become a ‘self perpetuating’ fund which continually “recycles” to help one adopting family after another. For example, one $5,000 loan over 10 years becomes $40,000 helping 8 families adopt (given an average loan repayment of 15 months).

Adoption Grant Application/Approval Process

The couple sends their application to FFM along with a copy of their home-study report and the other information requested on the application. We try to review each application within 6-8 weeks after we receive it and send a letter to inform the couple of our determination.

Donor Questions

May I designate my contribution for the benefit of a specific family?

According to the IRS guidelines, a donor may not retain control over how a nonprofit organization ultimately uses the donated funds, but the donor may make a request that his or her funds be used in a particular manner. The organization is permitted to consider the request, while the ultimate authority regarding the disposition of the funds is in the discretion of the organization. FFM is grateful for each donation, as each gift enlarges the amount of money available to us, thus making it more likely
that each approved family will receive the funds they need.