World Vision Charity to Leave L.A. for Seattle

In a new twist on Southern California businesses finding the climate friendlier elsewhere, the poverty-fighting charity World Vision U.S. on Tuesday said it will save millions by selling its 11 buildings in the San Gabriel Valley and moving to Seattle next year, perhaps with many of its 525 employees.

World Vision U.S., which spent $1.2 million to fight poverty in Los Angeles after the 1992 riots and more than $6 million in other U.S. relief programs during 1993, says it can save $5 million a year by making the move. Robert A. Seiple, the organization’s president, cited higher medical insurance premiums, salaries and too much government regulation as factors making the company’s expenses high in Southern California. For example, he said, the organization must spend about $100,000 a year for a ride-share program to comply with regional regulations.

“It’s not that (the regulation) is going to break anyone’s back, but when you put all these things together, the arithmetic goes in the wrong direction,” Seiple said. “When you put what our costs are here relative to other states, it makes California look bad.”

The announcement that one of Los Angeles County’s largest charities plans to relocate could be another blow to the local economy.

“For small and large charities alike, there may come a point where they may either fold or leave the (area),” said Ron Farina, associate manager of the Los Angeles chapter of the American Red Cross. “That reduces the total strength of our network of nonprofits within the community.”

According to a recent in-house survey, about half of World Vision U.S.’s employees--about 260 people--indicated that they would make the move to Seattle.

The charity hopes to have a staff of about 400 in Seattle. Officials said salaries will be frozen for two years as a cost-saving measure because of lower salaries in the Seattle area.

Seiple said the organization has not selected a site in Washington but plans to cut costs by centralizing operations in one building rather than the sprawl of 11 it acquired in the San Gabriel Valley over three decades.

The charity will not cut back on its assistance to the Los Angeles area, Seiple said. In fact, it will be better able to help Los Angeles, where World Vision operates programs for homeless families and for Latino parents, by moving someplace cheaper and stretching its available funds, he said.

Officials said World Vision helped more than 46 million people in 1993. The charity operated more than 5,500 projects in 97 countries last year, fighting poverty, hunger and homelessness, and helping victims of natural disasters.

Peter Morrison, a demographer for RAND Corp. in Santa Monica, said the announcement may be thought of “as an instance that illustrates how certain footloose industries that don’t need to be tied to a certain location are picking up and leaving.”

A recent study by Southern California Edison showed that 700 businesses and 100,000 jobs were lost from the state over the past five years.

World Vision’s departure, planned for September, 1995, is a reminder that charities have to make tough bottom-line decisions, as do other businesses, said Jon P. Goodman, director of USC’s Entrepreneur Program, which works with growing companies, including nonprofit agencies.

“The really good news is that it’s about time that not-for-profits look at their bottom line,” Goodman said. “I don’t think this is the beginning of a new movement of nonprofits leaving town. What one is really looking at is the continuing realization in the nonprofit sector that there is a new pressure for efficiency for organizations that don’t have a real strategic need to be in Los Angeles.”

Charities are in a particular bind, said Robert Wright, a professor of organization and management at Pepperdine University. In a tough economy, costs go up, whereas income--or donations--go down.

World Vision’s international umbrella office in Monrovia, from which it has operated since 1965, will remain, as will up to 20 employees staffing a local office in a site to be selected. World Vision U.S. is a subsidiary of the international World Vision charity.

Employees who had received word of the move were weighing their options Tuesday.

Jan Thornton, 58, a 15-year employee, said she is uncertain about leaving California and feels saddened by the charity’s decision.

“I think California is in a real crisis,” she said. “It worries me when I see all the companies leaving without the consideration of being a part of the solution in California, as opposed to just running from it.”

Other employees said they were anticipating moving their households to the Northwest. “I’m excited about the move,” said Brian Sellers-Peterson, 37, director of church relations.

The charity hopes to raise about $11 million by selling the 11 buildings in Monrovia, Duarte and Pasadena.

World Vision is among Monrovia’s top three employers, City Manager Rod Gould said. It is exempt from property taxes, but its employees spend money in shops and restaurants, and the organization draws conference participants to local hotels. The loss will be a blow to the city, Gould said.

“It’s a prestigious employer,” he said. “Everyone’s aware of the good work World Vision does all over the world for people in distress.”

The charity’s board of directors has been weighing a move for 16 months and considered 14 cities. In December, 1993, the board members decided against moving, Seiple said, but changed their minds.

Monrovia Mayor Bob Bartlett said he is saddened by the decision. He said the city could not comply with a request that the charity had made for a 30-acre site.

“If we had the 30-acre site they wanted, we would have got it for them, but we’re completely built-out,” he said.

Times staff writer Joe Donnelly contributed to this story.