where are taking off? reporter: the question is how can these little-known charities take tax credit for shipping millions of dollars in medicines to guatemala. it s all in the back door brokering of noncash donations, what charities call gifts in kind. critics call that an easy way for pretty bad charities to look pretty good. by overvaluing their donations. how? tom tigue was disgusted when he found out. he runs a reputable charity called direct relief. from his warehouse in california, he supplies free medicines to rural clinics in the u.s., to disasters overseas, to almost any medical relief team that needs medicines. it s all free. he says when he had leftover medicines, he sent it to another charity so they could find a good use for it. the value of the medicines he sent?
$3 million. within the week, he had a thank you letter for his $100 million donation. you personally know that is true. right. well, we ve seen examples, including with products that we have given and assigned a value to which we know is correct, and then seen it in the handoff to another charitable organization be revalued at as many as, i don t know, 40 times higher, which is absurd. reporter: tigue tracked down what happened and found a man named cliff feldman, a broker who lives in florida, was working with charity services international in that south carolina warehouse and according to these e-mails was getting paid $2500 each time he handled the paperwork. the paperwork says tigue was disturbing. the reason to make it appear bigger is to make them appear like they re doing more good. that s the only thing i can think. we ve been at this for 65 years