At Northwest Surrogacy Center, our first priority is safeguarding the intended parents and surrogates who place their trust in us. One of the most common questions we receive is why we manage surrogate funds in-house rather than using a third-party escrow company. It’s an important question, and the answer comes down to experience, protection, and long-proven best practices.

Below, we break it all down.

Q: Why does NWSC manage surrogate funds directly?

A: Because it’s the most secure and reliable option for our families and surrogates.
For more than thirty one years, NWSC has managed surrogacy escrow accounts with zero instances of fraud or theft. We maintain insurance policies that cover an amount greater than the total funds we hold on behalf of families. This coverage exists specifically to protect our clients, and it’s a level of financial security most third-party escrow companies simply don’t carry. Our dedicated escrow team also follows accounting practices (detailed below) that meet or exceed industry standards.

Managing funds in-house also allows us to ensure that payments are accurate, timely, and aligned with the contract, which keeps the journey running smoothly.

Q: Is it typical for a surrogacy agency to handle the funds directly?

A: No, it’s not common. But we are not a common agency.
Many agencies use outside escrow companies, but unfortunately, these outside escrow companies are as susceptible to fraud and theft as anyone else. Outside escrow companies have experienced situations where funds were mismanaged, lost, or even stolen.

We keep this responsibility in-house because we believe we offer the highest standards of safety and transparency in the surrogacy industry.

Q: How does NWSC ensure funds are secure?

A: Through multiple layers of protection, including:

• Substantial liability and crime insurance, exceeding the full amount we hold for all intended parents combined.
• A thirty-one-year track record with no losses, no fraud, and no irregularities.
• Strict internal financial controls, including separation of duties, multi-step approvals, and regular audits.
• Dedicated financial staff who work exclusively managing surrogate accounts accurately and ethically.
• Ownership of the agency includes licensed attorneys who follow strict rules of professional conduct that include honest communication, avoiding conflicts of interest, and acting competently.

These safeguards aren’t just policies; they’re systems we’ve refined over decades to give families complete peace of mind.

Q: What are the advantages of NWSC managing these funds?

A: We offer reassurance, stability, and a smoother journey.
Because our financial team works directly with your case manager, we can ensure that reimbursements, compensation, and medical payments happen quickly and correctly. Surrogates don’t wait. Intended parents don’t need to chase down information. And everyone stays aligned with the contract.

In short, you get faster payments, fewer errors, better transparency, and less risk.

Q: Why doesn’t Northwest Surrogacy Center move to a third-party escrow now that the industry has expanded?

A: Because we don’t believe that any outside escrow company can match our safety precautions. Third-party surrogacy escrow services vary widely in quality, oversight, and insurance coverage. Several have collapsed or been investigated for misusing client funds. Even some of the reputable outside escrow companies do not carry insurance equal to the total amount they manage.

At NWSC, we believe intended parents and surrogates deserve more than “industry standard.” They deserve the highest level of protection available—and that’s what we strive every day to provide.

Q: What does this mean for my journey?

A: The security of money held in escrow does NOT depend on whether you work with  an agency or third-party escrow company. What makes a difference is:

• A proven track record of secure financial management
• Size and health of the business
• Commitment to professional, ethical policies
• Financial checks and balances so that no single individual is responsible for deposits or withdrawals
• Frequent financial reconciliations to catch accounting errors early
• Insurance for ALL funds held in escrow
• A team of dedicated financial professionals working together to manage escrow funds, not just the owner of the business or an individual bookkeeper
• Internal practices that track funds for each surrogate
• Separate bank accounts to ensure not all funds are accessible at any one time

At NWSC, funds are protected from the moment they are deposited until after delivery, when the escrow account is fully reconciled in accordance with your surrogacy contract.

Our system is built so intended parents and surrogates can focus on what truly matters: a healthy pregnancy and baby. We handle the financial logistics with precision and care, and you always have access to transparent accounting throughout your journey.

If you have more questions about how we manage financial security or anything else about the surrogacy process, our team is always here to help.