Orphanage constructions often involve a lot of manual labor. This costs less and gives you an opportunity to be involved for your own good and for the integrity of the project. You will have the chance to build a solid bond with the community through your involvement. This is a sponsorship opportunity that helps you fulfill your social responsibility as well as your own needs.
How much does it cost to build an orphanage, how much to start an orphanage, how much money to start an orphanage? There was once a local charity organization in my country that wanted to help underprivileged children. So, they started building an orphanage. This was my first experience of this kind and I was fascinated by it. However, when the project started to cost more than expected, it became clear that additional donations would be required. That’s when I decided to write about how much does it cost to build an orphanage.
🧱 How It Works
Cost depends heavily on size, location, materials, and whether you’re building new or renovating.
Running costs per child also need to be factored in for budgeting.
Define capacity: How many children? (e.g., 10, 50, 100)
Choose site: Decide on renovation or new build and materials
Get design done: surveyors, architects, engineers
Excavate/build foundations, erect structure
Install utilities and finish interiors
Furnish bedrooms, common rooms, offices
Landscape outdoor space, add play areas
Inspect, equip, then open with full operational budget in place
✅ Pros and Cons
✅ Pros
⚠️ Cons
Helps vulnerable children
High upfront cost
Can tailor to local needs
Ongoing operating expenses
Can repurpose buildings
Permits and regs vary by region
🔍 Compared with Similar Options
Small orphanage (10 children): Around $100,000 build cost
Medium (50 children): About $500,000
Large (100 children): Approximately $1 million
Annual operating cost in India (per child): USD 2,500
💡 Common Mistakes to Avoid
Underestimating operational costs
Forgetting to include architect/design fees or permits
Not planning for staff needs and salaries
Skipping quality materials that last
👷 Who Should Use This
Non‑profits planning facilities
Community leaders with space and budget
Donors or project managers assessing feasibility
🧰 Expert Tips
Make sure to budget surveyor, architecture, engineering & project management costs early on
Always include furnishing & setup in startup costs
For operating costs, research local average per child—e.g., $2,500/year in India
Consider renovating an existing structure to save on materials and labor
📌 Quick Facts
Operational costs vary hugely by location and services offered
Build cost range: $30,000–$150,000 (small to mid-sized facility)
Renovation vs. new build shifts budget heavily
According to ARC, the expenses involved in starting an orphanage include:
Food — USD $300 per month
Clothing — USD $150 per month
Education — USD $30 per month (if there are no costs associated with educating children)
You can start with as little as $500 for the basics, or even less if you’re willing to work with a group of volunteers and donors. If you’re looking for higher-quality materials and equipment and more professional services, you’ll likely need a budget in the tens of thousands of dollars.
Orphanages are a great place for children who have lost their parents or other loved ones because they offer safety and security in an otherwise uncertain world. And while orphanages may seem like a good idea at first glance, there are many reasons why they should be avoided if possible.
The most important thing to know about building an orphanage is that it’s not always going to be easy or cheap! You can’t just build one overnight with no planning or experience — it takes time, money, patience and determination to see it through to completion.
The first step is finding land on which to build your orphanage. You’ll need space for housing as well as outdoor areas where kids can play and interact with each other. It should also be close enough to town so kids can go into town when they need supplies or want some time away from others at the orphanage.
An orphanage is a residential institution in which children who have either been abandoned or are without parents are housed. It is usually a place for full-time residence, but it can be part of a larger institution or organization whose primary focus is something other than childcare.
Orphanages are often run by charities and similar organizations, such as those run by religious groups, including Christian ones. Orphanages are also sometimes run by local governments and municipalities, or they may be private organizations with state funding. In the United States, orphanages were generally closed down in the 1960s; some people claim that this was due to the lack of financial support from the government after World War II ended in 1945.
The cost of building an orphanage varies depending on its location and size, but one estimate puts the cost at about $300 per square foot of space. This includes construction materials and labor costs. A smaller home might cost $25 per square foot of space while an apartment building might cost $50 per square foot of space.
How much to start an orphanage
Item
Description
Estimated Cost
Small Orphanage
Capacity:
1-10 children
Operating Expenses:
Food and Clothing
Education
Medical Care
Utilities
Staff Salaries
$100-$300 per month per child
Medium Orphanage
Capacity:
11-50 children
Operating Expenses:
Food and Clothing
Education
Medical Care
Utilities
Staff Salaries
Note: Land and building costs may not be included
$200-$500 per month per child
Large Orphanage
Capacity:
More than 50 children
Operating Expenses:
Food and Clothing
Education
Medical Care
Utilities
Staff Salaries
Note: Land and building costs are significant
Varies widely based on location
Location Cost Variations
The cost of building materials, labor, and supplies can fluctuate based on:
Urban vs. Rural Setting
Local Economic Conditions
Availability of Resources
Varies by region
The cost to start an orphanage is largely determined by location and the number of children you plan to serve. In general, the more children you plan to serve, the more funding you will need to raise. The most common expenses include:
Facility rental or purchase: This includes rent for a facility, utilities, insurance and property taxes.
Food and supplies: These include food for orphans and staff, as well as toiletries, clothing and other basic necessities.
Staff salaries: Volunteer staff may be able to provide some support at no cost, but paid staff members are essential for long-term success of any program. If you do not have volunteers available, your costs will increase substantially.
Administrative expenses: These include overhead costs like accounting services and marketing materials such as brochures and flyers that promote your organization’s mission.
The cost of starting an orphanage varies greatly depending on the country and the type of facilities you want to provide for your children. For example, in Ethiopia, where we work with several orphanages, it costs about $5,000 to build a house for an orphanage with six bedrooms and one bathroom. The cost of running an orphanage is also variable, but averages about $300 per month. This includes salaries for staff, food costs, electricity bills, school fees and other miscellaneous expenses like uniforms or shoes that are needed for the children.
Here are some examples of how much it costs to start an orphanage:
In Uganda: About $100 per month per child (including food and medical care)
In Kenya: About $500 per month per child (including food and medical care)
In India: About $1,500 per month per child (including food and medical care)
1. How much does it cost to start an orphanage?
It is not easy to answer this question because there are many factors that influence the costs of setting up an orphanage. If you want to make a rough estimate, start with $50,000 for the first year and then add more money as needed. The only thing that you should pay attention to is that you don’t spend too much money on furniture and other things that can be bought second-hand or donated by people who want to help you.
2. How much does it cost per month?
You should expect monthly expenses of about $2,500 for each child in your orphanage if you have 20 children living there. This includes food, clothing and education fees as well as other minor expenses like toothpaste, soap and shampoo etc. You should also consider additional costs like electricity bills and maintenance costs for vehicles such as buses used to transport children from one place to another (e.g., school).
The cost of starting an orphanage can vary depending on the size of the facility, location, and whether you hire staff or not.
There are many different types of orphanages that exist today. Some are very large facilities that house hundreds of children, while others are smaller private homes where only a few children live together.
The average cost of a small-scale home is around $10,000 per month. These homes do not have any paid staff members as they are run by volunteers who work in shifts.
An average orphanage costs around $50,000 per month to operate, which includes wages for one full time employee per 100 children being cared for.
The largest orphanages can cost up to $1 million per month to operate. These facilities may have up to 1,000 children living in them and will employ several staff members including doctors, nurses and teachers.
