Is it better to sponsor an orphan in an orphanage or at home, especially with current children present, and what is the ruling on sponsoring a female orphan in the case of adoption?

The one who sponsors an orphan receives a great reward, whether they sponsor them in their home or in orphanages and charitable organizations. Orphan sponsorship is based on financial support and care. Whoever combines both will attain the most complete reward, and whoever provides the financial aspect has fulfilled the most important part. Adopting an orphan girl with the intention of sponsorship is a great good. However, attributing her to one's lineage is forbidden in Islam. If your wife or one of your sisters breastfeeds her five full feedings before she reaches two years of age, she becomes a forbidden relative to you (mahram (definition)) and is not attributed to your lineage, nor does she inherit from you. If none of them breastfeeds her, then you are not permitted to be alone with her once she reaches the age of menstruation, nor to look at her, because she is a non-mahram (ajnabiyah).