Travel refunds continue from Points of Light Institute.

Some 1,200 customers are expected to receive refunds or have their travel plans fulfilled by the time the Points of Light Institute completes the process, which is expected this week.

The Points of Light Institute closed its eStore early in July to investigate what the organization called "significant financial and operational irregularities." Initially, more than 1,000 affected customers were contacted in early July. An independent contractor, who had been handling the business since 2003, was terminated by Points of Light, which also contacted the U.S. Attorney's Office for Washington, D.C.

The independent contractor, Maria Herrmann, was a former employee in business development at the Points of Light Foundation, which last year merged with the Hands On Network and rebranded as Points of Light Institute. Herrmann has not returned calls for comment and closed her home's front door on a freelance reporter working for The NonProfit Times.

Although no figures were yet disclosed as to the cost of reimbursements, spokeswoman Sharon Goldmacher said the majority of refund applications were submitted between July 5 and July 15. Donors and financial supporters have offered donations and financing to ensure Points of Light addressed the problems without directing the organization's donations for it. The organization also established a call center (800-886-6304) for customers.

The first round of refunds was mailed July 18 and latest was sent at the end of the first week of August. Customers will receive an email prior to checks being mailed. The check includes a disclaimer that once it's endorsed, the customer waives all rights to litigation for that particular claim.

Mitch-Stuart Inc., where the eStore purchased travel certificates, fulfilled travel plans before July 15 for customers, while those after that date could expect a refund. Each reservation was for one to four people, so as many as 4,800 travelers could be impacted and with packages ranging from $400 to well more than $1,000, the cost could reach millions of dollars.

Goldmacher did not have a breakdown of how many of the 1,200 customers already had been refunded or had travel fulfilled. Mitch-Stuart CEO Stuart Paskow estimated he fulfilled travel plans for more than 100 customers. Mitch-Stuart is a vendor from which Points of Light purchased its travel certificates. The firm has been working with Points of Light to help it straighten out the Points of Light's problems.

Most customers will receive refunds within 30 days of completing the application, Goldmacher said, however, a significant number have filed incomplete forms with missing information. The most time-consuming part of the process is verifying the claim, she added. Price WaterhouseCoopers is overseeing the refund process and puts each claim through seven to 10 verification tests to ensure the proper amounts are paid to the right people.

The promptness of refunds is based on the amount of information provided, not when customers filed their application, Goldmacher said, making the easiest applications to verify the quickest to process and pay. She did not have figures on how much the process has cost or how much money has been refunded.