An adoption agency is a business to handle the placement of children in adoptive homes, licensed by the state or states in which it operates.  Licensing procedures are different for private adoption, and through international adoption.  An adoption agency can be licensed for one or more types of placement, if it meets all state requirements.  However, in the case of international adoption, an adoption agency must also meet the country’s requirements.

A public adoption agency operates within the framework of a state or county government.  It is funded by state and federal funds.  A private adoption agency is an independent business which operates with funds provided by client fees for its services.  A private adoption agency may be incorporated as a partnership, or as another type of legal entity.  Private adoption agencies are mostly non-profit entities, and a few are for-profit.