Cutting out text with background inside it

Another way, if you are having trouble with the main ways here

Put the text on top of the shapes

Select just the text

Type > Create outlines

Edit > Copy

With just the text selected

Switch to the Shape Builder Tool

Click on each transparent area - I changed the fill colour just  to make it easier to see

Object > Compound path > Make

Select >All - the text and the background

Object > Clipping mask > make

Then Edit > Paste in Front

To put your outline, saved earlier, back

then Object > Group

to make sure they stick together

You've got the background shapes and the type on top of it. You've selected the text with the Selection tool

Iand chosen Type > Create Outlines.

Select all the shapes behind the text and Object > Group.

Select just the outlined text and choose Object > Compound Path > Make.

Select everything -- the outlined text and the grouped shapes.

Then Object > Clipping Path > Make.

Is that the effect you wanted?

Joanne,

As I (mis)understand it, especially based on a guess that the structure is slightly complicated with some counters (holes in letters) also being white, I believe the simplest and most straightforward way would be to:

1) Create a copy of the lettering behind the original (select the lettering, then Ctrl/Cmd+C+B);

2) Ctrl/Cmd+8 to turn the copy into one Compound Path then also (ShiftClick or something) the background as well, then Ctrl/Cmd+7 to create a Clipping Mask behind the original.

With this, all the white in the original will be retained, and part of the Clipping Mask with the colours will just be hidden behind those parts.

Is the text already outlined? (converted to paths?)

It will then be a compound path and you need the inside path of every letter. Combine all those into another compound path and then make a clipping mask