The efforts to "flatten" the Peace Corps and consult with the grassroots regarding personnel, programs, training and sites is the first reform priority for attracting more experienced Volunteers. The command and control approach is not effective in managing employees and even less so in managing Volunteers, especially experienced Volunteers. To be clear, we are not employees of the Peace Corps. The motivation of Volunteers is markedly different from that of employees. We are motivated more by idealism and less by traditional career goals such as money or status. We expect to be encouraged and supported, emotionally and practically. We expect to be empowered without stifling regulation. We expect to be consulted without condescension. We expect that our views will be validated and lead to action.
11. Testimony of Chuck Ludlam and Paula Hirschoff on S. 732: The Peace Corps Volunteer Empowerment Act: Recruiting More Experienced and Older Volunteers
Recruiting More Experienced and Older Volunteers
The demographics of the Peace Corps have always been heavily skewed toward recent college graduates with little or no work experience. Then-Senator John F. Kennedy proposed the Peace Corps idea at the University of Michigan during his 1960 presidential campaign, asking whether the students gathered there would be willing to serve their country abroad. His call has resonated over 45 years. And we believe it will now resonate with that same generation, now close to retirement, so Peace Corps can broaden its demographic scope. We were pleased to hear Director Tschetter state at his confirmation hearing that his key new initiative was to recruit more experienced Volunteers, especially Baby Boomers. However, it may be difficult to progress toward this goal before overhauling the Peace Corps management approach to Volunteers and implementing the reforms in the legislation.
The efforts to "flatten" the Peace Corps and consult with the grassroots regarding personnel, programs, training and sites is the first reform priority for attracting more experienced Volunteers. The command and control approach is not effective in managing employees and even less so in managing Volunteers, especially experienced Volunteers. To be clear, we are not employees of the Peace Corps. The motivation of Volunteers is markedly different from that of employees. We are motivated more by idealism and less by traditional career goals such as money or status. We expect to be encouraged and supported, emotionally and practically. We expect to be empowered without stifling regulation. We expect to be consulted without condescension. We expect that our views will be validated and lead to action.
In our careers, many of us have been managers and have ourselves experienced both enlightened and heavy handed management. We know the difference. We enter the Peace Corps assuming that we'll be respected for the experience we bring to the task. We hope to serve as mentors to the younger Volunteers.
The second most useful aspect of the legislation for older Volunteers is the seed funding, (addressed below). Without seed funding for demonstration projects, many Volunteers have difficulty performing serious development work.
The third most useful aspect, the provisions establishing Volunteer rights (also discussed below), is also highly relevant to recruiting experienced Volunteers. It is not reasonable to expect more experienced Volunteers to serve in an organization that can fire them without cause or due process—basically what can happen now with certain Country Directors. Older Volunteers have to make major sacrifices in order to serve—leaving jobs, renting houses, selling cars, arranging finances—and they need to know that their service will not be truncated by a Country Director acting on a whim or against an outspoken Volunteer. Older Volunteers tend to be more outspoken than younger ones, which makes them more vulnerable to retaliation and more in need of clear rights.
Next in importance in serving the interests of older Volunteers come the reforms associated with retiree health insurance, the homeowner capital gains issue, and reforms of the medical screening process, which are discussed below.
Finally, the legislation includes a number of additional provisions for recruiting older, more experienced Volunteers.
A. Goal to Double Number of Older Volunteers: Section 104 (b)(1) provides that the Peace Corps shall set a goal of twice the current number of Volunteers with substantial work experience by 2009. The definition of "more experienced Volunteers" is those with a minimum of five years of work experience. The Peace Corps shall report to the Congress on the steps it takes to achieve this goal. This goal focuses on experience, not age, but it would, in effect, result in a demographic change in the Peace Corps. Because it focuses on experience rather than age, it does not violate EEOC rules.
B. Identification of Disincentives: Section 104 (d) provides that the Peace Corps shall identify the disincentives and barriers to service by Volunteers with substantial work experience and set a plan to eliminate or reduce them. And it shall submit a report to Congress.
C. Demonstration Programs: Section 104 (e) provides that the Peace Corps shall designate at least 20 sector-specific programs (i.e. environmental education or agriculture) in at least 20 different countries for which the Volunteers shall have a minimum of five years of work experience. This applies to Fiscal years '08, '09, and '10. And the Peace Corps must evaluate the issues that arise with respect to these programs. The proposal is to organize sector specific programs with only experienced/older Volunteers and to analyze the issues that arise. This will give the Peace Corps more experience in recruiting, placing, training and managing more experienced Volunteers. Adjustments will probably be needed in many elements of Peace Corps training, sites, and support.
The Peace Corps has launched a "50+" program that seems to resemble the provision in the legislation.
D. Written Language Curriculum Materials: Section 104 (d) provides that the Peace Corps shall develop substantial written language curriculum materials for Volunteers. More experienced/older Volunteers tend to have more difficulty learning languages. Most Peace Corps language training emphasizes oral communication, with little use of written materials. More experienced/older Volunteers would learn languages better with the aid of a written language curriculum.
E. Itemized Deductions: Section 305 provides that the Peace Corps shall consult with the Department of Treasury and the Internal Revenue Service to determine what Volunteer expenses may be deducted as itemized deductions. The Peace Corps shall also secure rulings from same on which Volunteers can rely in claiming such deductions (e.g. revenue rulings or IRS "letters"). The Peace Corps shall report to the Congress which additional deductions for expenses will be helpful. And the Peace Corps shall publish a guide for applicants and Volunteers on same. More experienced/older Volunteers are more likely to itemize their deductions, but it is now not at all clear which expenses are deductible. Can Volunteers deduct—as charitable expenses or unreimbursed employee expenses—the cost of special items they purchase solely because of the demands of Peace Corps service? (Probably yes.) Can Volunteers who intend to write a book about their Peace Corps experiences—as many do—deduct some of their expenses? (Clearly yes.) Can Volunteers deduct the cost of foreign language classes they take prior to their service? (Probably yes.) Can Volunteers deduct their unreimbursed medical expenses incurred as part of the Peace Corps screening process? (Probably yes.)
The tax code provides that "volunteers" may deduct unreimbursed expenses that are incidental to their volunteer work. The expenses must be directly connected to the individual's performance as a volunteer with a qualified organization. The volunteer expenses that are deductible must be 1) unreimbursed, 2) directly connected with the volunteer service, 3) incurred only because of the services rendered, and 4) not personal, living, or family expenses. In addition, volunteers who purchase assets to use while performing volunteer services for charity can't deduct their cost if the volunteer retains ownership of the asset, even if it is used exclusively for charitable purposes. A taxpayer may deduct the cost of maintaining a personally owned asset to the extent that its use relates to providing services to charity. For example, volunteers can deduct the fuel, maintenance, and repair costs (but not depreciation or fair market value) of piloting their planes in connection with volunteer activities for the Civil Air Patrol. They cannot deduct the value of the taxpayer's time in service.16
The Peace Corps should hire a tax expert to work through these issues and cooperate closely with the IRS to determine which expenses are deductible. In many cases, current IRS guidance is not clear. It's also likely that the IRS will take an exceedingly restrictive view on what is deductible, so the Peace Corps will need to exert its interests as a sister agency to persuade the IRS to provide reasonable guidance. If the IRS concludes that it does not have the legal authority to allow the deduction of many of these expenses, the Peace Corps could work with the IRS and OMB to develop a legislative recommendation to submit to the Congress to make some of these expenses deductible.17
F. Financial Guide: Section 307 provides that the Peace Corps shall publish a financial guide for applicants and Volunteers about how to manage their finances in the U.S. while they serve abroad. More experienced/older Volunteers have more difficulty with such tasks as turning over their financial affairs to others or renting their homes, so a financial guide would be helpful.
G. Survey of Older Volunteers: Section 104 (c) provides that every two years the Peace Corps shall conduct a survey of more experienced/older Volunteers in country to determine what additional actions would reduce or eliminate barriers to their service. Such disincentives and barriers are numerous and this bill undoubtedly does not address them all. (It might be preferable for the survey to focus on the quality of the Peace Corps experience and ways to enhance it, rather than just on "disincentives and barriers to service.")
In March 2007, the Peace Corps sent a survey to its older Volunteers (defined as 50 or older) as part of its "50+" initiative, soliciting a wide range of information about their experiences and views. A copy of this survey is attached as Appendix F along with a list of questions that could be asked in the next survey in Appendix G.
In preparing our testimony, we heard the following from an older Volunteer couple:
In addition to a survey of experienced volunteers every 2 years maybe one could take place now. Contact all seniors who have served in the last 5-10 years. Even or maybe especially those who did not complete service would be able to give good information on what would have improved their service or helped them stay. (We had a senior friend who told Peace Corps she was leaving to take care of an ill grandchild. She really left because her first site was not even ready and she couldn't go there; she was then placed at a site only because there was housing. Peace Corps hadn't consulted the chief in the area so he wouldn't cooperate, making her work very difficult. She stayed a year.) There are many stories like this in Peace Corps—especially with older PCVs where the family reason for leaving early is a cover-up for a frustration of not being able to do real development work.
In addition, the same couple made some additional recommendations regarding older Volunteer recruitment:
Peace Corps should staff the recruitment section for seniors with seniors. This should also be the case for selection and placement. There might also be some senior specialists who would develop sites for some highly skilled seniors rather than just throw them into some of the basic sites. Peace Corps might try a demonstration project for seniors, having one person be assigned to the senior applicant and follow that person through the process. To be the recruiter, selection person and the placement person for a prospective senior volunteer. That senior specialist might also work with the staff overseas to develop volunteer specific sites. The senior specialist could also provide some assistance to the senior volunteers with information on the special needs of seniors who have "stuff" [like] a house, taxes, and cars.
These useful ideas from an older couple who recently completed service demonstrate the value of listening to and respecting the views of Volunteers. They truly are the best source of information.
The NPCA survey found strong support for the provisions of S. 732 regarding recruiting experienced Volunteers with 79% agreeing with the goal of "doubling the number of Peace Corps volunteers with at least five years relevant work experience by the end of 2009." Nineteen percent disagreed. "A study and subsequent development of a plan to eliminate disincentives and barriers to service for volunteers with substantial work experience" was favored by 93% with 4% disagreeing. And 79% agreed that "for the next three years, [the Peace Corps should] designate at least 20 sector-specific demonstration programs in at least 20 different countries for which a minimum of five years of relevant work experience is required." Only 16% disagreed.
For the respondents who chose to comment on this provision, many expressed enthusiastic support for these proposals. There were generalized comments concerning the values each type of volunteer offers—the experience of older volunteers compared with the energy and openness to new ideas offered by younger volunteers. Following are a few of the written comments:
This section of legislation would really help make PC serious with respect to its development goal… experienced PCVs not only offer invaluable experience in development they can also provide the role as mentors and ‘helpers’ to younger, inexperienced PCVs…PC needs to be much more of a development agency with experienced PCVs an essential part of this.
Current PCV, Senegal, 17 months
PC is way behind the curve on implementing this type of program for potential PCVs. A primary reason [Volunteer Service Overseas, VSO] is so successful is due to this type of recruitment. I feel the ET rate of this type of PCV will be very low—a real cost savings to PC at large.
Anonymous
If the Peace Corps is listening to the Volunteers, it will support these provisions.
The comment from the survey comparing the Peace Corps to the British-managed Voluntary Service Overseas (VSO) is particularly interesting. In 2004 VSO was voted the top international development charity in the International Aid and Development category at the Charity Awards for promoting innovative approaches to globalizing volunteering. The VSO approach to volunteering has changed dramatically over the years. It no longer sends "school-leavers"; today the average age of a VSO Volunteer is 38. Applicants must have a professional qualification (degree) and 2-5 years of relevant professional experience. Each year it places about 1,500 skilled professionals in nearly 35 countries. VSO is three years older than the Peace Corps, having sent its first Volunteer overseas in 1958. Given VSO's success and reputation, the Peace Corps might reflect on its model to see if it might be updated in the same respects.
Let us now focus on three reforms that are especially relevant for older Volunteers: retiree health insurance, capital gains taxation of homes, and reforms of the medical screening process.
