Are there really "for profit" adoption agencies out there?

Question

Someone today mentioned to me about the reform needed with adoption agencies because of the profit they are making. I've seen this comment made in this section before and never really understood it completely. I thought all adoption agencies in the US were non-profit because of the nature of the work.

We used an adoption agency for our adoption because it was what the bio family wanted to do and needed to do because the state was trying to take the child. The agency we used was/is supposedly "non-profit". Did we get duped? If so, what SHOULD adoptive parents be searching for if using an agency? I'm sure that I'm not the only AP who didn't realize that there were "for profit" agencies out there.

(It would be helpful if you could cite sources for us to reference also - thanks).

Answer 1

I'm glad you asked this question. We did a private adoption so I have no experience with agencies. I had no idea that such profits were being made.

I have itemized lists for every amount of money we paid in professional services (attorneys, counselors,etc) for our adoption so I know I was not duped.

Answer 2

I agree wholeheartedly with the link to Musings of the Lame's post.  Also, please see this post written by American Family which mildly related to adoption, discusses how to evaluate a non-profit to see how they are spending their money.

http://american-family.org/2007/12/29/ch...

Answer 3

Most infant adoption agencies (new born) do make quite a profit from their adoptions. Most adoptions cost tens of thousands of dollars, with most of that money going to cover "advertising" costs for the agency. I work for a non-profit adoption agency, and we don't do newborn adoptions, we purely do foster care adoptions, and we still make a good deal of money. Its called purchase of service, and it goes to cover employee salarys for monitoring the placement until the other state agrees to allow the adoption to finalize. There are a lot of hidden costs involved in infant adoption, I would ask for a detailed list of fees and where the money goes to. I wish I could say more, but I don't want to get in trouble.

Answer 4

Please tell me that this question is a joke or another one of those baiting questions.

Just do a search on "adoption agency" - most of the results will bring up slick "Madison Avenue" sites that are optimized with adoption "hype" to part adopters with their money and pregnant women with their babies.

Get real!!

Answer 5

Here ya go BDPWife read up on the NCFA who isn't an adoption agency, but it will just give you a heads up on who's connected to who, who's making what and how they're all intertwined.

http://musingsofthelame.blogspot.com/200...

Answer 6

Adoption agencies can be for-profit or non-profit, which merely refers to their status as a business. For-profit businesses can share their earnings with their shareholders, whereas non-profits must put a certain percentage of their earnings back into their business (for example more advertising). Many non-profit businesses have very – very – well-paid folks at the top. The non-profit status allows a business to apply for a tax exempt status, which means they may get tax related benefits, such as being exempt from state and federal corporation income tax. Some non-profits can also apply for “public charity” status, which means that they can solicit charitable donations on which donors do not pay taxes.

Catholic Charities USA is a non-profit involved with adoption. The 2004 Forbes Report, states the top earner made $149,995; total revenue 3.27 billion; non-profit earnings (after expenses) $310 million.

In other words, there is a lot of money flowing whether an adoption agency is a for-profit or not-for-profit business. Although the non-profit tag sounds good, a business’s tax exempt status has little to do with ethics when it comes to infant adoption.

Private adoptions (no agency involved), usually involve attorneys, an adoption “facilitator” (often an unlicensed person), the mother, and the prospective adopters; they should be made illegal in this country as they are in many other countries including the UK and Australia. There is absolutely no oversight in these situations.

What’s a prospective adopter to do? Educate yourselves!! Be aware of the history of the adoption business before you get involved. Mirah Riben’s book, “The Stork Market” is a good source and includes some points on how prospective adopters can avoid being victims. Pay attention to the big stories in the press where natural parents are fighting to get their kids back – despite who you side with in a custody battle, take note of the agency involved.

Because there is so little oversight in this industry it is difficult to know whom to trust. I think you really have to dig for information - you obviously can't simply rely on the word of the agency or attorney that you are dealing with.

Answer 7

Yes sadly there are un-ethical agencies out there.. for information on the agency that took my child go here..

http://www.babybrokerwatch.com

I want  nothing more that to take this man and his agencies down! He and his associates are evil, evil people..

Answer 8

NON-PROFIT only refers to the business and if they have a positive cash flow.

The employees are a totaly different story, many are paid with bonuses and incredibly large salaries.

If a NPO has extra "funds" at the end of their year, they need to do something with it.  A family member of ours who runs a NPO bought a $60,000 car for the "NPO", to balance the "BOOKS"

Answer 9

There are "for profit" agencies in the US - Any agency that doesn't specifically list itself as "non-profit" is one.  Technically, what you're paying for is the "service" of the agency, but I honestly have a hard time with them.  A "for profit" agency just feels too close to baby selling for me.  

What people have said about "Non-Profit" groups is true.  However, it's also important to note that a $140k salary for the "top guy" in a non-profit organization is not unreasonable.  Even running TRUE (public benefit) non-profits takes a large amount of skill.  You have to have employees with enough knowledge and experience to handle the "nitty-gritty" of what has to be done for the entity to keep its books inline.  $140k just isn't an unreasonable salary for someone with that much responsibiltiy - if you compare that to what they could make in private industry, it really is a sacrifice for that person.  

What you have to worry about are people who use "non-profits" as a "front" for their own for profit interests.  In the adoption world, this is often attourneys.  Say an attourney starts a "non-profit" adoption agency.  Well, the agency doesn't actually have any profit - but it CAN have expenses.  That attourney can then bill the agency anything he wants for his consulting and legal services!  The "agency" isn't making any money, but the law firm or attourney sure is!  This can also be done less discretely by paying ridiculously high salaries and bonusses to employees.  If you pull into your adoption agency and you notice that everyone is driving a BMW or a Lexus...  well...  that could be a problem.  

The best thing to do is to follow Cam's advice.  Ask for explanations of every cost!  I think non-profits are required by law to have "open books".  (I am not sure about this - but any non-profit agency I've ever volunteered at has had it's general financial statements posted in a public location - so I assume they do this because it's the law)  Ask to see them!  See where they agency is spending it's money.  If the agency seems to be spending money wisely, and using any "excess cash flow" for good things (like mother counseling, etc) then you're probably safe.