World Vision has laid off about 50 employees, between 4 and 5 percent of its U.S. workforce, saying a decrease in cash donations in the first half of 2009 has forced it to make some painful cost cuts.

Some of the layoffs were at the Christian relief organization's Federal Way headquarters, where about 800 employees work. Employees were notified of the layoffs last week. World Vision will cut 2 to 3 percent more jobs by eliminating 25 open positions.

World Vision said its private cash donations have fallen this year, dropping about 3 percent from January through March, and about 18 percent in the most recent quarter.

The non-profit's cash shortfall is expected to be $39 million for fiscal year 2009, which ends Sept. 30.

"We can no longer avoid the painful cost reduction steps that many organizations have already implemented," World Vision President Richard Stearns said in a statement. "The efforts of our faithful employees and donors have allowed us to swim against the tide longer than almost any other non-profit."

Other cost-cutting moves include reducing the organization's contributions to retirement plans by 50 percent, increasing employee premiums for health benefits and canceling annual merit raises for the second year.

Stearns received annual compensation of $336,000, and Lawrence Probus, senior vice president of strategic solutions, received $197,000, according to World Vision's 2008 tax filing.

Its five highest paid employees are Atul Tandon, vice president of donor engagement ($213,000); William Randolph, vice president of information technology ($160,000); George Ward, senior vice president of international programming ($157,000); Martin Lonsdale, vice president of channel management ($155,000), and Michael Veitenhans, senior vice president ($150,000), according to the filing.

Stearns talked about the role of faith-based organizations and federal funding in an interview earlier this year.

World Vision is coming up shorter in cash contributions from major donors and individuals, but income from current and new child sponsors is expected to rise about 4 percent in 2009, to about $333 million. Sponsors regularly donate $30 to $35 per month.

"The overwhelming majority of our child sponsors remain loyal, despite the harsh economic conditions many of them are facing," Stearns said. "These unsung heroes have been the foundation of our ministry for decades, and we are grateful for their faithfulness."

In-kind gifts of products such as pharmaceuticals are up more than 30 percent this year, he said, to top a record of $390 million.

Globally, World Vision International said its cash income likely will drop from a projected $1.9 billion to $1.6 billion in the fiscal year. World Vision International has about 40,000 employees in 100 countries.