A recent investigation by CBS Texas examines financial records and governance practices at Hunger Busters, a Dallas nonprofit formerly led by Latame Phillips. According to CBS Texas, bank records obtained during ongoing litigation show tens of thousands of dollars in expenditures that nonprofit governance experts questioned because they did not appear to have an obvious connection to the charity’s mission of providing meals to low-income children. The reporting follows an earlier CBS Texas investigation that found the organization had stopped regularly delivering meals despite continuing to solicit donations.
| Issue Identified by CBS Texas | Details Reported by CBS Texas |
|---|---|
| Meal program | CBS Texas reported that Hunger Busters had stopped making regular meal deliveries for at least a year despite continuing to promote its mission of feeding low-income children. |
| Million Air payments | Approximately $33,125 in payments to a company specializing in charter aviation and private hangar services. The purpose of the payments was unclear based on the bank records reviewed by CBS Texas. |
| Golf club dues | Approximately $14,447 in payments for golf club memberships. |
| Reality show expenses | Approximately $9,500 in payments to The Blox, an entrepreneur mentoring and reality-show competition in which former CEO Latame Phillips participated. |
| Investment in mentor’s company | Two months after filming, Hunger Busters paid $25,000 to a toy company owned by one of The Blox mentors. According to CBS Texas, the mentor said she had a written investment agreement with Phillips. |
| Other expenditures | CBS Texas also identified expenditures including $411.93 at a Zales jewelry store, $1,834.75 at a medical boutique, and other expenses that did not appear to have obvious links to the charity’s mission. |
| Internal controls | Experts interviewed by CBS Texas expressed concern that Phillips reportedly approved payments, signed checks, and maintained the charity’s financial records. The report also noted that the IRS had not received required financial filings from the organization in three years. |
CharityWatch Weighs In
CharityWatch CEO, Laurie Styron, was interviewed for the piece.
“It’s just a mess.”
“I’m really lost for words. I don’t come across situations this dire very often.”
“Thousands of dollars in purchases for anything, the board should really be involved at a deeper level, because that’s a lot of money relative to the size of the organization.”
“It is highly atypical for a charity to argue that appearing on a reality show is the best use of its marketing dollars. Also, the charity loses control of the narrative. If the goal is to appear in the best possible light for donors and for the public and your other stakeholders, a reality show is not really the way to do that.”
“It’s really an accountability black hole.”
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