GOLD2023

SCARLET HOPE Parent

We exist to show the hope and love of Jesus with women in the adult entertainment industry.

Louisville, KY   |  www.scarlethope.com
GuideStar Charity Check

SCARLET HOPE

EIN: 27-0804557


Mission

We exist to show the hope and love of Jesus to the ladies trapped in the adult entertainment industry.

Ruling year info

2017

Founder and President

Rachelle Starr

Main address

PO Box 6542

Louisville, KY 40206 USA

Show more contact info

EIN

27-0804557

Subject area info

Religion

Population served info

Women and girls

Sex workers

NTEE code info

(Religion Related, Spiritual Development N.E.C.) (X99)

IRS subsection

501(c)(3) Public Charity

IRS filing requirement

This organization is required to file an IRS Form 990 or 990-EZ.

Tax forms

Communication

Affiliations

Programs and results

What we aim to solve

SOURCE: Self-reported by organization

Scarlet Hope exists to show the hope and love of Jesus to women in the adult entertainment industry. Our goal is to help the women who have been exploited in strip-clubs and prostitution by providing an alternative career path through career training and opportunities. We believe that all women are created by God and are worthy of being treated with dignity and respect, but that the adult entertainment industry strips these women of their dignity and intrinsic worth and leaves the woman shamed, hopeless, and exploited with no way of escape. Even though many women in the industry may make good money, they often sell their dignity, self-respect, and worth for that money. We exist to show these women that God loves them and to help them see that there is hope. Due to the underground nature of sex-trafficking, solid statistics are difficult to find. According to the Polaris Project, there have been over 32,000 sex trafficking cases reported to them in the US since 2007.

Our programs

SOURCE: Self-reported by organization

What are the organization's current programs, how do they measure success, and who do the programs serve?

Career Development Program

Our Career Development Program is designed to help the ladies who have in some way been exploited through the sex industry to rebuild their lives through classes dealing with trauma and abuse, personal finance, relationships and family, Biblical counseling, therapy, job-skills training, and on-the-job training. Our CDP is a 6-semester, 18-month program that we make available for 5 new ladies every 3 months. Through grants, foundations, our social enterprise (Scarlet's Bakery), and donor development, we are able to pay these ladies by the hour for being in the CDP.

Population(s) Served
Women and girls
Sex workers

We have three particular types of outreach to the women in the sex industry--Street Outreach, Massage Parlor Outreach, and Strip Club Outreach.

STREET OUTREACH involves volunteers from our ministry driving to areas in our city that have been noted by the FBI and LMPD as hot spots for sex trafficking. We drive around in these areas until we find a woman that looks like she is in need of help. Most often these women are being exploited or trafficked, and sometimes they are simply homeless. It is not our role in outreach to distinguish who is being trafficked and who is not. Each time we meet a women, we give them a bottle of water, a bag with basic hygiene and nutritional resources, our contact info, and a rose to reminded them that their Heavenly Father loves them and that they have dignity because they were created in His image. We also ask them if there is anything we can pray with them about and then we pray with them. Often times, the ladies we meet on the streets will contact us soon after our initial meeting and ask for help.

The staff ladies and lady volunteers also do MASSAGE PARLOR and STRIP CLUB OUTREACH. This begins in the afternoon when ladies and men from all over Louisville come one of our locations to cook a hot meal for the strippers in the clubs and prostitutes in the massage parlors. These meals are then taken into the strip clubs and massage parlors where the women in our ministry serve the strippers and prostitutes a warm home-cooked meal, and begin developing a relationship with them that will show them that "the church ladies" are not there to judge them but to show them that Jesus loves them and that there is hope because of Jesus.

Population(s) Served
Women and girls
Sex workers

Where we work

Goals & Strategy

SOURCE: Self-reported by organization

Learn about the organization's key goals, strategies, capabilities, and progress.

Charting impact

Four powerful questions that require reflection about what really matters - results.

Scarlet Hope and Scarlet's Bakery exist to provide hope and restore dignity to disenfranchised women in Louisville, KY. Our joint mission is to employ, equip, and empower women who've been exploited in the adult entertainment industry. We strive to provide a structured, Christ-centered work environment where each women in our program can grow personally, spiritually, and professionally. Our end goal is to develop female leaders out of the adult entertainment industry who are not just "survivors", but who are "thrivers" who know their intrinsic worth as image-bearers of God and who are able to lead other women out of a life of exploitation. We aim to rescue, redress, rebuild, and re-energize women out of the sex industry.

We have two main strategies to help us meet our mission to show the hope and love of Jesus to the women in the sex industry: Our Outreach Program and our Discipleship Program.

Our outreach program is a staff-organized, volunteer-driven program that reaches out to strippers and prostitutes with meals and resources to let them see, feel, taste, and smell how much God loves them.

Our Career Development Program is the main component of our Discipleship Program. Our Career Development Program is an 18-month program that pays $10/hr to for the women to sit in classes designed to help these women be able to rebuild their lives from the ground up. One of the main ways that our CDP helps develop business skills in the women we're serving is by giving teaching them baking skills in Scarlet's Bakery, our social enterprise designed to help fund Scarlet Hope, while also accomplishing our goals of developing female leaders out of the sex industry.

While there are other organizations and resource centers for women who have been abused and exploited, Scarlet Hope is the only non-profit in Kentucky targeting women leaving any area of the adult entertainment industry and/or who have been trafficked. While we aim to raise awareness between the direct link between abusive histories and working in adult entertainment, that only scratches the surface. We believe the population we serve needs a tangible hope--they need to be able to earn a living while growing toward independence. While we provide educational classes and resource referrals for women who walk through our doors (and realize the need for those), our program is heavily focused on career and skills-focused training, primarily through the bakery. We are equipping these women to lead in the workforce to impact this generation and the next in our community. Our staff and volunteers are not only certified where it is required, but are also driven with the heart for our mission.

We have reached thousands of women in the adult entertainment industry with the hope and love of Jesus. Two years (2015) ago we started Scarlet's Bakery as a social enterprise to engage, employ and empower women coming out of the adult entertainment industry. Since that time, we have employed 23 different women and are currently working on expanding our bakery to a second location so that we can employ more women. Our Career Development Program is expanding every 3 months by more women coming out of the industry. Since it has only been a part of our ministry for the last 2 years, we just celebrated our first 2 graduates at the end of September. Our organization has also expanded to 3 other cities (Los Vegas, Reno, and Cincinnati) and hope to expand internationally in the years to come.

Revenue vs. expenses:  breakdown

SOURCE: IRS Form 990 info
NET GAIN/LOSS:    in 
Note: When component data are not available, the graph displays the total Revenue and/or Expense values.

Liquidity in 2022 info

SOURCE: IRS Form 990

1.37

Average of -2.10 over 10 years

Months of cash in 2022 info

SOURCE: IRS Form 990

6

Average of 5.8 over 10 years

Fringe rate in 2022 info

SOURCE: IRS Form 990

8%

Average of 8% over 10 years

Funding sources info

Source: IRS Form 990

Assets & liabilities info

Source: IRS Form 990

Financial data

SOURCE: IRS Form 990

SCARLET HOPE

Revenue & expenses

Fiscal Year: Jan 01 - Jun 30

SOURCE: IRS Form 990 info

Fiscal year ending: cloud_download Download Data

SCARLET HOPE

Balance sheet

Fiscal Year: Jan 01 - Jun 30

SOURCE: IRS Form 990 info

The balance sheet gives a snapshot of the financial health of an organization at a particular point in time. An organization's total assets should generally exceed its total liabilities, or it cannot survive long, but the types of assets and liabilities must also be considered. For instance, an organization's current assets (cash, receivables, securities, etc.) should be sufficient to cover its current liabilities (payables, deferred revenue, current year loan, and note payments). Otherwise, the organization may face solvency problems. On the other hand, an organization whose cash and equivalents greatly exceed its current liabilities might not be putting its money to best use.

Fiscal year ending: cloud_download Download Data

SCARLET HOPE

Financial trends analysis Glossary & formula definitions

Fiscal Year: Jan 01 - Jun 30

SOURCE: IRS Form 990 info

This snapshot of SCARLET HOPE’s financial trends applies Nonprofit Finance Fund® analysis to data hosted by GuideStar. While it highlights the data that matter most, remember that context is key – numbers only tell part of any story.

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Business model indicators

Profitability info 2018 2019 2020 2021 2022
Unrestricted surplus (deficit) before depreciation -$10,616 $50,965 -$235,560 -$14,286 -$184,477
As % of expenses -1.0% 3.6% -23.5% -1.7% -37.0%
Unrestricted surplus (deficit) after depreciation -$54,965 $5,039 -$284,623 -$52,751 -$219,984
As % of expenses -4.8% 0.3% -27.0% -6.1% -41.2%
Revenue composition info
Total revenue (unrestricted & restricted) $1,123,106 $1,489,948 $757,234 $888,972 $333,879
Total revenue, % change over prior year 19.3% 32.7% -49.2% 17.4% -62.4%
Program services revenue 30.1% 28.2% 12.1% 0.0% 0.0%
Membership dues 0.0% 0.0% 0.0% 0.0% 0.0%
Investment income 0.3% 0.8% 0.6% 0.0% -0.5%
Government grants 0.0% 0.0% 0.0% 0.0% 0.0%
All other grants and contributions 69.5% 70.8% 134.8% 100.0% 93.9%
Other revenue 0.0% 0.2% -47.4% 0.0% 6.6%
Expense composition info
Total expenses before depreciation $1,108,857 $1,430,763 $1,003,208 $827,939 $498,184
Total expenses, % change over prior year 28.0% 29.0% -29.9% -17.5% -39.8%
Personnel 56.7% 59.6% 62.0% 61.5% 61.8%
Professional fees 1.5% 1.0% 1.4% 1.9% 1.8%
Occupancy 7.6% 8.8% 12.5% 7.0% 8.3%
Interest 0.0% 1.1% 1.6% 1.5% 1.0%
Pass-through 0.0% 0.0% 0.0% 0.0% 0.0%
All other expenses 34.2% 29.6% 22.5% 28.1% 27.1%
Full cost components (estimated) info 2018 2019 2020 2021 2022
Total expenses (after depreciation) $1,153,206 $1,476,689 $1,052,271 $866,404 $533,691
One month of savings $92,405 $119,230 $83,601 $68,995 $41,515
Debt principal payment $18,742 $0 $10,511 $65,904 $29,471
Fixed asset additions $63,283 $277,922 $0 $0 $0
Total full costs (estimated) $1,327,636 $1,873,841 $1,146,383 $1,001,303 $604,677

Capital structure indicators

Liquidity info 2018 2019 2020 2021 2022
Months of cash 4.9 3.0 5.6 6.4 6.0
Months of cash and investments 4.9 3.0 5.6 6.4 6.0
Months of estimated liquid unrestricted net assets 2.1 1.7 4.1 4.4 1.6
Balance sheet composition info 2018 2019 2020 2021 2022
Cash $450,135 $353,116 $467,918 $444,766 $248,123
Investments $0 $0 $0 $0 $0
Receivables $0 $0 $0 $20,000 $0
Gross land, buildings, equipment (LBE) $1,019,541 $1,297,462 $858,359 $858,359 $856,474
Accumulated depreciation (as a % of LBE) 26.0% 23.9% 35.1% 39.6% 40.8%
Liabilities (as a % of assets) 14.4% 22.2% 26.8% 21.3% 23.5%
Unrestricted net assets $950,505 $955,544 $670,921 $618,170 $400,936
Temporarily restricted net assets $91,586 N/A N/A N/A N/A
Permanently restricted net assets $0 N/A N/A N/A N/A
Total restricted net assets $91,586 $99,806 $89,392 $167,117 $187,137
Total net assets $1,042,091 $1,055,350 $760,313 $785,287 $588,073

Key data checks

Key data checks info 2018 2019 2020 2021 2022
Material data errors No No No No No

Operations

The people, governance practices, and partners that make the organization tick.

Documents
Form 1023/1024 is not available for this organization

Founder and President

Rachelle Starr

Number of employees

Source: IRS Form 990

SCARLET HOPE

Officers, directors, trustees, and key employees

SOURCE: IRS Form 990

Compensation
Other
Related
Show data for fiscal year
Compensation data
Download up to 5 most recent years of officer and director compensation data for this organization

There are no highest paid employees recorded for this organization.

SCARLET HOPE

Board of directors
as of 10/10/2023
SOURCE: Self-reported by organization
Board of directors data
Download the most recent year of board of directors data for this organization
Board chair

Rachelle Starr

Scarlet Hope

Rachelle Starr

Scarlet Hope INC

Michelle Kannaple

Norton Healthcare

Brian Howard

Context Coaching

Anna Bates

National Christian Foundation Kentucky

Michael Hall

NAI Fortis Group

Lori Riggs

Kindred Healthcare

Sherry Fields

Julia Black

TriArrows

Board leadership practices

SOURCE: Self-reported by organization

GuideStar worked with BoardSource, the national leader in nonprofit board leadership and governance, to create this section.

  • Board orientation and education
    Does the board conduct a formal orientation for new board members and require all board members to sign a written agreement regarding their roles, responsibilities, and expectations? Yes
  • CEO oversight
    Has the board conducted a formal, written assessment of the chief executive within the past year ? No
  • Ethics and transparency
    Have the board and senior staff reviewed the conflict-of-interest policy and completed and signed disclosure statements in the past year? Yes
  • Board composition
    Does the board ensure an inclusive board member recruitment process that results in diversity of thought and leadership? Yes
  • Board performance
    Has the board conducted a formal, written self-assessment of its performance within the past three years? No