Following an investigation by The Dallas Express that raised concerns about missing funds from a Special Olympics fundraiser, the Southlake Foundation has released a public response. This comes after public records indicated that the foundation entered tax forfeiture status in March, prompting it to defend management of the funds.
As previously reported by The Dallas Express, two sources with direct knowledge alleged that the foundation’s president withheld proceeds from a February 2025 fundraiser intended for Carroll ISD’s Special Olympics program and did not issue payment until after learning about The Dallas Express investigation into the matter.
Another source alleged that the foundation’s president, Kush Rao, acknowledged in an email exchange with Carroll ISD senior officials that the funds had not been sent. Those emails have been requested by DX through a Public Information Act inquiry that is still pending.
The foundation pushed back against those allegations in a statement that read, in part, “The 2024 and 2025 Southlake Foundation galas raised money to benefit Special Olympics and individuals with disabilities, a mission the Foundation has fulfilled and continues to fulfill.”
The foundation added that the funds are distributed through what it described as a formal application-and-approval process.
“This dedicated fund was created in 2024 at the request of local parents of children with disabilities and is held at a local Southlake bank,” the statement continued.
The organization denied withholding money raised for Special Olympics, though the payment to Carroll ISD was made 14 months after the fundraiser and only after a DX reporter contacted Rao. Rao told the reporter he had sent the check the previous day.
The amount received by Carroll ISD was reportedly less than half of what was reportedly raised at the event and committed to the district. It remains unclear what entity made the payment, as there is no current public record of an active Southlake Foundation entity following its tax forfeiture in March.
“A recent article has created the false impression that the Foundation raised money for Special Olympics and then withheld it,” per the Southlake Foundation’s May 6 statement.
Despite the response, additional concerns from Southlake residents have surfaced online following the investigation.
Southlake resident Zee Wilcox alleged that public records, including the foundation’s IRS Form 990 filings, show the foundation later entered Texas tax forfeiture status after failing to respond to state notices. She also pointed out what she described as additional discrepancies in the publicly reported data.
“Southlake Residents: These Numbers from the Southlake Foundation’s Own Tax Filings Do NOT Add Up,” Wilcox posted to Facebook on May 6. “MAJOR RED FLAG: Inconsistent / Misclassified Revenue on Schedule A (Form 990).”
“Public records show the foundation was later placed into Texas tax forfeiture in February/March 2026,” Wilcox continued. “They had received notices and had roughly a full year to fix the issue… but they ignored the warnings and continued operating, hosting events, and accepting money while the entity was heading toward and then entered forfeited status.”
Wilcox also claimed she was blocked on Facebook by Rao and the Southlake Foundation page after publicly raising questions.
“Southlake is a generous community. When we buy tickets or donate, we expect the money to actually support the causes they promote,” Wilcox wrote.
The Dallas Express reached out to Rao and Wilcox for comment, but did not receive a response.
