Down the drain: how massive donations went to defunct Dallas nonprofit

A CBS News Texas investigation found hundreds of thousands of dollars flowing into a Dallas charity over the last year, even after the IRS stripped it of its tax exempt status for failing to disclose its finances. The I-Team uncovered the contributions after initially reporting on Hunger Busters in January. 

That investigation showed how the nonprofit had stopped making and delivering brown bag meals to thousands of Dallas ISD students each school day, even though it continued advertising those efforts. Then-CEO Latame Phillips told the I-Team it had been at least a year since the work had stopped. 

Weeks after the I-Team report, the IRS posted that it had revoked Hunger Busters' nonprofit status in May 2025, a move that would have affected every fundraiser held and donation collected after that date.

One local nonprofit management expert said the revocation is a "big deal." Dr. Elizabeth Searing is an associate professor at UT Dallas who called the tax-exempt status one of a nonprofit's "most precious" assets. 

"If you don't have it as a charity, then not only do you need to be paying taxes on the revenue you bring in, but the people that donate to you, it's just like they're giving money to Kroger," she said. "They're not giving money to a tax-exempt entity anymore, so they can't write it off on their taxes."

Such IRS revocations happen automatically, typically after an organization fails to file its annual financial disclosure for three years in a row. But while the agency stripped Hunger Busters' status in May 2025, it did not post the revocation until February 2026. 

During that time, the I-Team found that Hunger Busters continued to apply for and win grants and bring in donations.

In January 2026, the Mavs Foundation announced that it had awarded Hunger Busters $50,000. According to the rules, only charities with 501(c)3 status are eligible. A statement emailed to the I-Team said, "At the time of the grant, Hunger Busters was an established nonprofit partner in the community."

The State Fair has the same rule for its Community Giving Program, which in February 2026 announced $650,000 in grants, including an unspecified amount to Hunger Busters. A spokesperson for the fair told the I-Team there was "no indication of revocation" when the application was reviewed.

Kershaw's Challenge, a multi-million-dollar fund run by former MLB star Clayton Kershaw, invited Hunger Busters to apply. It is believed to have given the nonprofit $175,000. No one with Kershaw's Challenge responded to the I-Team's requests for comment.

Latame Phillips took over as Hunger Busters CEO in 2023. That was the last time records show the nonprofit filed anything with the IRS. 

The IRS delays posting its revocations, which can make it more difficult to vet a nonprofit, though anyone can request financial disclosures directly from an organization. The I-Team made requests to Phillips in December and January. While he said he would hand over the records, he never did. Phillips resigned in late January, days after our initial investigation aired. He did not respond to our request for comment for this report.

The future of Hunger Busters is unclear. The board quickly named an interim CEO, but sources tell the I-Team he is not responding to calls, texts, or emails about the organization. He has not replied to our requests for information since early February.

Dee Baker Amos, the previous chair of the Hunger Busters board, sent the I-Team this statement:

"Since first learning about the lawsuit filed by Tyler Street Foundation in early October 2025, I hoped the situation was a misunderstanding and could be explained. I became increasingly concerned as I could not get clear answers to basic questions. Leading into the Meet the Chefs gala in November, I was worried for the organization but still holding out hope that the lawsuit would be addressed and mounting questions would be answered.

I got involved with Hunger Busters because I believed in the mission, supporting food-insecure children and their families. I would never be okay with any improper use of funds and would never condone fraudulent actions. Based on what I knew at the time, I believed the organization was operating with integrity and in service of its mission.

Since the investigative story aired, I have learned information that was not previously disclosed to the Board, including that the organization's nonprofit status had been revoked in May 2025. I have also come to understand there were serious discrepancies that were not previously known to the Board, as well as more than $500,000 received from grantors in support of feeding children and the organization's capital campaign. To donors and partners who gave in good faith and are now asking about their money: I understand that question completely. Any return of funds should be pursued through the appropriate legal process and grounded in verified financial findings.

While the Board appointed an Interim CEO to support an orderly transition, the information, access, and operational records needed to resume operations were not turned over. Put simply, without a proper handover, there is no functioning organization to lead. At this point, this is a legal matter, and the most responsible path forward is accountability through the appropriate process with a focus on donor remedies including the return of funds to impacted donors. I support full transparency, verified financial review, and accountability so the public can understand what happened and donors can pursue appropriate remedies."