The ABBA Fund - interest-free loans for adoption

FAQ

Application and Approval Procedure
Approval Criteria
Credit Checks
Maximum Loan Amount
Interest-Free Loans
Covenant Loan
Monthly Payments
Federal Tax Credit
Financial Hardship
Timing of Assistance
Disbursement of Funds
Tax Deductible Contributions
Designated Gifts
Promotion
Strategic Plan
Singles

What is the application and approval procedure?

The couple mails their application to The ABBA Fund along with a copy of their home study report and the other information requested on the application. We try to review each application within 4 - 6 weeks after we receive it and send a letter to inform the couple of our determination. So it will not take too long to find out if you are approved with us; the remaining question is whether we will have sufficient funds at the time to meet your need. We know that God has the resources to accomplish His will for each family. What we do not know is how and when He will provide. For that we have to wait and trust Him.

What criteria do you consider in deciding which families will receive financial assistance?

The applicant must be a Christian couple, called by God to enlarge their family through adoption, who are committed to train and educate their children in accordance with Biblical principles, and who need financial assistance in order to complete the adoption.

In determining whether The ABBA Fund will provide a loan to a particular family, the Board considers many things, and the decision to deny assistance to a particular family does not constitute a judgment that the family is a "bad" family. In fact, in many cases it seems like a decision between two "equals" and the Board has to rely on wisdom and discernment from the Lord as to whom He wants to bless through The ABBA Fund and to whom He will provide in other ways.

In allocating funds for loans from the general loan fund, factors that are important to the Board include: (a) spiritual maturity; (b) worldview; (c) the length and stability of the applicants' marriage (but loans have been made to both young and old!); (d) church involvement; (e) philosophy of education; (f) whether the mother works outside the home or is at home with the children (the Board prefers the mother to be home with the children, although loans have been made in certain cases to couples where both parents work outside the home); and (g) how much of their own money the applicants are putting into the adoption (the Board prefers that the applicants have a large percentage invested in the adoption, but the Board has made loans in certain cases that covered almost all of the expenses due).

In allocating loans from funds that we administer for churches, businesses, adoption agencies and other organizations, we work with the organization to establish mutually agreed upon criteria.

The Board does not state its reasons for denying assistance to any particular family.

Does The ABBA Fund have any special income requirements? Is there a credit check? What other factors do you consider in determining whether you will approve an application?

We are stewards of the funds entrusted to us by the Lord through our donors. Good stewardship requires us to consider finances as well as many other factors. We rely heavily on the adoption agencies to do a lot of the background checks and to report on those in their home study. This prevents duplication of effort and helps to keep our overhead costs low. Above all, we ask God to provide us with His wisdom so that we might glorify Him in our decisions.

What is the maximum amount of money that an adopting family may request from The ABBA Fund?

There is no limit on the amount of assistance that a couple may request. However, at times our resources may be limited, so we expect the adopting parents to try to obtain financial assistance from other sources first (for example, your church, your employer, organizations providing grants, etc.) and use The ABBA Fund to make up any shortfall. That way, we are able to help more families.

What interest rate does The ABBA Fund charge on its adoption loans?

The ABBA Fund does not charge any interest on the loans it provides.

Why do you use the words “covenant loan” to describe the financial assistance you provide?

The ABBA Fund is a Christian ministry and we have carefully chosen the term "covenant loan" to distinguish us from other lenders. We do not ask the applicant to enter into a traditional legally binding "promissory note" with The ABBA Fund secured by guaranties or a mortgage on their home. Instead, we ask the couple to enter into a "covenant agreement" whereby they covenant to reimburse The ABBA Fund in manageable monthly payments. The covenant obligation is then between the couple, The ABBA Fund and God. Accordingly, the couple bears a financial stewardship responsibility to both The ABBA Fund and to God, to use funds that God provides to them to reimburse The ABBA Fund for the financial assistance that God graciously provided.

What will our monthly reimbursement amount be?

The amount of your monthly reimbursement will depend upon the total amount of financial assistance that you receive from The ABBA Fund. The sooner you repay your covenant loan, the sooner those funds will be available to help another family. Following are some general guidelines:

Assistance Amount		Minimum Monthly Reimbursement
Up to $5,000		$125
$5,000 to $9,999		$150
$10,000 to $14,999		$175
$15,000 to $19,999		$225
$20,000 and higher		$275

Do we have to use the money we receive from our federal adoption tax credit to reimburse The ABBA Fund?

You may use any means available to you to reimburse The ABBA Fund. The adoption tax credit is a convenient source of funds to use for reimbursement to The ABBA Fund, and also makes more money available sooner for The ABBA Fund to help other families.

What if we experience financial hardship during our repayment period?

Although you must honor your covenant to repay the assistance you received, The ABBA Fund will work with you through your financial hardship.

Can a family receive a commitment for financial assistance from The ABBA Fund before beginning the adoption process?

The family needs to use its own resources to start the adoption application process and proceed through the pre-placement assessment (home study) stage, as we must receive a copy of the family's home study report as part of their application to The ABBA Fund for financial assistance.

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

For payments owed to the agency, The ABBA Fund will make payments directly to the agency. For items such as foreign country fees, travel expenses, hotel fees, etc., which will be paid directly by the parents to the service provider, The ABBA Fund will provide funds directly to the couple upon receipt of documentation of the amounts needed.

Are contributions to The ABBA Fund tax deductible?

Yes, and contributions may be made by cash or check, or through Electronic Payment on our website. Gifts of stocks, property and other gifts in kind are also accepted. The ABBA Fund is a 501(c)(3) charitable nonprofit organization, and donations are tax deductible as allowed by law.

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

According to the IRS guidelines, in order for the donation to be tax deductible, a donor may not retain control over how a nonprofit organization ultimately uses the donated funds; however, 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. The ABBA Fund 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.

Do you have a flier or brochure that I can distribute to share information about The ABBA Fund?

Yes. We have both a Flier and a Brochure that you can download. If you need a large number of copies, please Contact Us and we will ship some to you.

What is your vision for the future of The ABBA Fund?

Our vision is for The ABBA Fund to become a “self perpetuating” fund which continually “recycles” its funds to help one adopting family after another. We intend to grow The ABBA Fund to a size at which the loan repayments being received each month will fund the financial needs of new adopting families during that month. For more information, please review our Strategic Plan.

Does The ABBA Fund provide adoption loans to singles?

We acknowledge that many men and women are in single parent situations due to death or divorce. By God's grace, many of these single parents are doing a commendable job of raising their children despite the difficulties of single parenthood. We believe that God's biblical model for creating or expanding a family includes both a father and a mother. Accordingly, The ABBA Fund makes its adoption assistance resources in the general loan fund available only to married Christian couples (however, in some funds that we administer for churches, businesses, adoption agencies and other organizations, we may be able to assist single parents).

When my father and my mother forsake me, Then the Lord will take care of me. - Psalm 27:10

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