The fundraising arm of St. Jude Children's Research Hospital announced Thursday that it will cut 70 jobs.

The American Lebanese Syrian Associated Charities, ALSAC, cited economic challenges as the need for "across-the-board" cuts and the layoffs.

The job cuts represent about 6 percent of ALSAC's 1,175 employees.

Most of the layoffs will come from ALSAC's Memphis headquarters, while others will come from offices nationwide, officials said without elaborating.

The charity's executives did not make themselves available for interviews Thursday so they could focus on employees, a spokesman said.

"Before the economic challenges hit, ALSAC was anticipating significant growth in revenue and we developed an infrastructure to handle this growth," George Shadroui, ALSAC's vice president of communications, said in a prepared statement. "That growth is not realistic in today's economic climate."

Along with the layoffs, ALSAC will reorganize its work force "to strategically focus on key areas of opportunity both programmatically and geographically."

An ALSAC public relations director said the cuts came to programs "that would have the least possible impact on our core business."

The cuts come after Richard C. Shadyac Jr. was named CEO of ALSAC in September.

According to government documents, the research hospital reported revenues of $499.6 million in 2008 and expenses of $500.1 million, for a net loss of $500,000.

ASLAC's most recent tax documents show the charity took in $650.6 million in direct public support in 2007. When dividends and other investments are included, the charity brought in a total of $749 million in 2007. The charity also recorded expenses of $573.8 million, for a surplus of $175.1 million.

Leo Arnoult, a consultant to nonprofit organizations and founder of Arnoult & Associates Inc., said the 2 percent drop in inflation- adjusted giving in the fourth quarter of 2008 was an "unusual situation" in the recent history of giving. This makes ALSAC/St. Jude particularly vulnerable, he said.

"Any large organization that depends on small-to-average-sized donations depends on middle-class people," Arnoult said. "When unemployment goes up like it did this year, there's a lot of people who have to choose between giving at those modest levels, giving less or pulling in their horns for awhile."

- Toby Sells: 529-2742

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American Lebanese Syrian Associated Charities

Mission: Fundraising arm for St. Jude Children's Research Hospital

Work force: 1,175 in Memphis and satellite offices around the country.

Layoffs: Cut of 70 jobs represents 6 percent of total work force.

Contact: 595-3300

Web site: stjude.org

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Originally published by Toby Sells sells@commercialappeal.com .

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