Dallas charity received massive donations from major non-profits even after losing tax exempt status, the I-Team found

The CBS News Texas I-Team has uncovered new details about a scandal-plagued Dallas charity that raise even more concerns over its operations.

Earlier this year, we reported that Hunger Busters, an organization that delivered thousands of brown bag meals to Dallas ISD students every day, stopped delivering those meals but kept raising money on that promise.

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's reporting, the IRS announced that Hunger Busters had been stripped of its non-profit status. However, the announcement came 10 months after the revocation actually went into effect, in May of 2025. 

It would have been up to Hunger Busters to tell its donors. But during that period, Hunger Busters received hundreds of thousands of dollars in grants from high-profile charities including the Mavs Foundation and the State Fair of Texas.

Bold-faced names back Hunger Busters

In January of 2026, the Mavs Foundation announced that it had awarded Hunger Busters $50,000. According to the foundation's rules, only charities with 501(c)3 status are eligible. 

The State Fair of Texas has the same rule for its Community Giving Program. In February, it announced $650,000 in grants, including an unspecified amount to Hunger Busters. 

Kershaw's Challenge, a multi-million-dollar fund run by future Baseball Hall-of-Famer and Highland Park native Clayton Kershaw, invited Hunger Busters to apply for a grant, resulting in a $175,000 donation. 

In an emailed statement, the Mavs Foundation said, "At the time of the grant, Hunger Busters was an established nonprofit partner in the community." A spokesperson for the fair told the I-Team there was "no indication of revocation" when the application was reviewed. No one with Kershaw's Challenge responded to the I-Team's calls or emails about its vetting process.

And it wasn't just big donations. A campaign on the fundraising platform Zeffy showed Hunger Busters received contributions as recently as late April, totaling over $50,000.

Losing 501(c)3 status

A non-profit losing its status is a "big deal," according to Elizabeth Searing, a UT Dallas associate professor who specializes in non-profit management.

"Your tax exempt status is one of your most precious assets as a nonprofit organization. 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."

IRS revocations happen automatically, typically after an organization fails to file its annual financial disclosure for three years in a row. But the agency delays posting the revocations, which can make it more difficult to vet a nonprofit, though anyone can request financial disclosures directly from an organization. 

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

The I-Team requested records from Phillips in December and January. While he said he would hand over the records, he never did. Phillips resigned in late January, days after the initial investigation aired. He did not respond to a request for comment for this report.

Other legal issues for Hunger Busters

The I-Team's investigation found other questionable financial decisions under Phillips' leadership.

The Tyler Street Foundation, another Dallas non-profit, sued Hunger Busters after it said Phillips lied about how he spent two grants from them totalling $116,000. 

The money was supposed to pay for a van and help with the purchase of land. Instead, Vivian Skinner, Tyler Street's president, said Phillips falsified property records and presented a rental van as if it was purchased with the grant money.

In addition to the civil lawsuit, a criminal investigation is apparently underway. The Dallas Police Department told the I-Team that it referred a report to the FBI, but the FBI has not confirmed an investigation.

What's next for Hunger Busters

The future of Hunger Busters is unclear. After Phillips resigned, 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 the I-Team's 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."