“As a direct result of Montgomery County’s refusal to contract with Gracehaven, the ministry has lost many opportunities to further its religious calling by helping youth survivors of sex trafficking through its group home and recovery services,” the lawsuit states.
Gracehaven’s lead attorney, Jake Reed of the Alliance Defending Freedom, did not return a request for comment about the lawsuit.
Gracehaven provides sex trafficking prevention services and rehabilitation. The nonprofit is a part of Central Ohio Youth for Christ, and it operates three state-licensed therapeutic group homes. Gracehaven had a contract with the Montgomery County Department of Job and Family Services from 2017 until this spring.
Montgomery County Prosecutor’s Office spokesperson Greg Flannagan said his office cannot comment on a lawsuit until it has completed a thorough review.
The Gracehaven contract, which ran in two-year cycles, allowed some Montgomery County foster care placements to receive treatment through Gracehaven. Gracehaven was then reimbursed for the placements using Title IV-E foster care maintenance payment funds.
During contract renegotiations in March 2024, Gracehaven officials noticed a contract provision that incorporated federal law that prohibits employee discrimination based on religion or other traits.
Gracehaven requires all of its employees to share its religious beliefs, and officials from the nonprofit told Montgomery County leaders it would not be “waiving or surrendering its right to employ only those who share its faith by signing the contract, but it would sign the contract ‘as is,’” according to the lawsuit.
The Montgomery County Department of Job and Family Services responded in a March 27 email that it would no longer “move forward with the renewal” of the contract.
Gracehaven’s lawyers also argued that the nonprofit is not considered a contractor or subcontractor under federal law by virtue of receiving Title IV-E funds.
“As a nonprofit religious organization, Gracehaven has the legally protected right to prefer hiring only those who share and live out its religious beliefs and practices,” the lawsuit states.
According to the lawsuit, Gracehaven’s per diem rate was expected to be $375 for every person placed into their care. Since July, Montgomery County employees who were not aware of the contract dilemma attempted to refer 14 girls to Gracehaven for group home placements. Gracehaven could not accept those referrals.
“As a direct result of Montgomery County’s refusal to contract with Gracehaven, the ministry’s operational budget is less than it otherwise would be if it had entered into the New Contract with the County,” the lawsuit states.
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