A substantial amount of donor money raised in the United States for orphaned children under Watoto Childcare Ministries in Uganda was retained by the organisation’s foreign offices but recorded as received and spent in Uganda, an analysis of documents has revealed.
The documents, which form part of the joint trial bundle in a 2022 tax dispute, indicate that Watoto Childcare Ministries recorded receiving $553,807 in 2020 and $381,525 in 2021, although the funds were allegedly never received in Uganda.
The findings have raised questions about how donor funds intended to support children under Watoto’s care were handled and accounted for.
According to the documents, some of the expenditure was reportedly incurred through credit cards and telephone bills associated with Marilyn Skinner, wife of Watoto Ministries founder and former leader Pastor Gary Skinner.
The analysis raises questions about the circumstances under which Marilyn Skinner accessed the funds, particularly because she does not appear in the Watoto American documents as an employee or officer of the organisation in the United States.
The documents indicate that Marilyn Skinner had an AT&T telephone account and an American Express credit card whose expenses were reportedly paid by Watoto.
Further analysis shows that James Skinner, a former United Kingdom trustee, was also a director of Creative Lab Academy, a company that supplied services to Watoto Childcare Ministries.
According to documents contained in the joint trial bundle filed before the Tax Appeals Tribunal (TAT) in August 2023, Creative Lab Academy invoiced Watoto Childcare Ministries £26,288 between February and August 2021. The payment was wire-coded as “Investment Income”.
The transaction has raised questions over whether a potential conflict of interest was declared before the money was paid through Bank of America.
James Skinner and his father, Gary Skinner, have since been dropped from the Watoto United Kingdom board, although the documents do not give an explanation for their removal.
The documents further show that about $250,000 was paid by Watoto US to Heritage Philanthropy and recorded as a cost in Uganda.
Watoto reportedly told the Uganda Revenue Authority (URA) that Heritage Philanthropy had been contracted to conduct fundraising in the United States, a position that was relevant to the tax dispute over the treatment of the payments.
However, a source familiar with the Watoto US operations alleged that Heritage Philanthropy was not declared in the United States as a fundraiser and was not reflected as such in its tax returns.
Other expenses listed in the documents under the Watoto Uganda programme include $4,010 for Thomas family biennial travel, a $200 wedding gift for Tara, $488 for Marilyn Skinner’s American Express fees, statements and Mastercard expenses, and AT&T telephone charges.
The AT&T account was reportedly transferred from Watoto Church to Watoto Childcare Ministries in May 2020, with monthly charges continuing through November 2021. The total telephone expenditure was about $5,560.
The documents formed part of the evidence considered in a case in which the Tax Appeals Tribunal dismissed with costs Watoto Childcare Ministries’ challenge against a Shs594 million tax assessment relating to imported services.
The Tribunal held that payments to service providers constituted income of Watoto even where the payments were made directly by donors or partner offices on behalf of the organisation.
The Tribunal further found that the payments directly benefited Watoto or were made in accordance with the ministry’s instructions and therefore constituted income sourced in Uganda.
In a November 28, 2025 ruling, the Tax Court held that the non-resident service providers were non-resident persons who had derived income from Ugandan-source services contracts. The court also found that Watoto had properly withheld and remitted withholding tax on the payments to the Uganda Revenue Authority.
In 2023, Gary Skinner and his wife, Marilyn, founders of Watoto Church, formerly Kampala Pentecostal Church, handed over leadership of the ministry after about 40 years. They were succeeded by Rwotlonyo and his wife, Vernita.
Watoto’s work also includes the Watoto Children’s Choir, which regularly tours the United Kingdom and other countries, where it performs and raises awareness and support for the organisation’s programmes.
Some of the money raised through such activities and other fundraising initiatives is sent to Watoto’s headquarters in Kampala, where the organisation runs programmes supporting children affected by orphanhood, including those who lost parents to HIV/AIDS and conflict in Uganda.
