Surrogates: Another Day at the Office--- A Guest Post

My thanks to Lili Miller, a social psychologist, for contributing the following intensely practical view of what happens when a woman agrees to be a surrogate mother and have a baby for a couple to rear as their own:

In most cases when the topic of surrogacy comes up, it is first put in terms of family, growing choices that couples have when trying to have a baby, questions about adoption, and more. These topics—and most others surrounding surrogacy—tend to focus on the emotional and philosophical implications of surrogacy as an option for the couple. What is often left out of the mix are underlying discussions about the financial implications of surrogacy for the surrogate mother, and what putting a price on this type of service actually means for her. Analyzed through this viewpoint, surrogacy is only a business, much like any other type of business. The surrogate therefore simply becomes a service provider. Her role inevitably changes when money comes into the equation.

Just in the United States, surrogacy continues to be a multi-million dollar business, and while some don’t like to look at it as a question of dollars and cents, it must be treated as such by surrogates, because there are a range of financial issues that must be understood and taken care of during the process.

Many of the financial implications of surrogacy have to do with taxes. In many cases, surrogates work as independent contractors, and as independent contractors, there are a number of tax breaks that they could be entitled to. Most surrogates have a range of business expenses they have to deal with—many of which can be used towards deductions when tax time comes around.

Before even delving into taxes, costs, potential earning, and financial planning for surrogates, it helps to take a look at the process that potential surrogates can follow to ensure that they are working in a safe, organized environment.

Surrogacy Agencies
Like a number of jobs on the market, surrogacy can be made much easier with the help of a professional organization or agency. While we don’t like to think of surrogacy agencies as being exactly the same as an agent that an actor or an athlete might have, the agency does serve some of the same types of functions for the surrogate, and they can be crucial allies every step of the way.

“Surrogacy agencies choreograph the entire process, from matching of the surrogate and intended parents to administration and enforcement of contractual matters.” (from When Your Body is Your Business)

When working with an agency, the surrogate is freed up to take care of herself and to deal with the physical aspects of the process without having to worry about the minutia of the business end of the process. Surrogacy agencies are also there to ensure that both parties are suited for the process and for each other.

Not everyone is qualified to be a surrogate. There is great risk involved, as well as physical and emotional strain. Surrogacy agencies take major steps to ensure that both the surrogates and “intended” parents are uniquely qualified for the process and that they are the right match for each other. This involves good old fashioned advertising (agencies conduct searches for both surrogates and potential parents) and serious screening.

Once a connection between a surrogate and intended parents has been made, the surrogacy agency starts to truly earn its keep. Extended contracts between surrogates and intended parents can be incredibly complex, with altering payment scales, multiple disbursements, and a range of caveats. They can also help define the manner in which business will be conducted between the intended parents and the surrogate. Contracts can include types of behavior that surrogates cannot engage in, as well as rate of communication between the parties, and much more. At the end of the day, the agency is there to ensure professional behavior on the part of both parties.

Once a birth takes place, the agency continues to manage the payment process and to make sure that the surrogate’s contract is honored in full. This is key for surrogates. If financial or legal issues arise, it’s crucial that the surrogate is not taking all of this on by herself.

Financial and Tax Options for Surrogates

While payment for surrogates varies, income can be considerable. However, costs for surrogates can be considerable, too. As was said earlier, there are a number of tax options and deductibles that surrogates can qualify for.

If a surrogate is working as an independent contractor, which many do, it’s important to keep thorough records of all job-related expenses. It’s also important to work with a professional in the field who can give you a clear picture of what types of products and services surrogates can legitimately “write off” on their taxes. Some surrogates can even qualify for the earned income tax credit.

Surrogates engage in single contracts that last a long time, and for health or just plain life reasons, contracts can be few and far between. A surrogate must explore all financial options and engage in a level of serious financial planning to make sure the money earned from surrogacy goes as far as it can.

Surrogates face health risks, physical strain, and a range of emotional elements that most people will never face on a job. For some surrogates, those risks and strains are worth it to help potential parents achieve their dream of having a family. In the end, surrogacy is still viewed as a business. Surrogacy is stripped of all its expressive motivations, and honed as another service for proactive consumerism.

Bio: SimplyLili is a PhD student in Social Psychology, and the eccentric author of Simply Lili Blog; created to disperse knowledge on a plethora of topics in a minimalist and humorous way. She is a self-proclaimed nerd and her 3 fave things are blogging, copywriting, and pugs.
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