The Conduit Election, an election that can be made by a private foundation in any taxable year, permits donors to treat contributions to their foundation made in an election year as though they had been made to a public charity instead. Treating contributions as though they had been made to a public charity, rather than to the private foundation, provides two key advantages:
Higher adjusted gross income (AGI) percentage caps; and
A fair market value deduction for contributions of appreciated, long-term capital assets. This includes, but is not limited to, privately held stock, real property, notes, bonds and partnership interests.