Cannot convert from List to List

It is because List<T> is in-variant, not co-variant, so you should change to IEnumerable<T> which supports co-variant, it should work:

IEnumerable<BaseClass> bcl = new List<DerivedClass>();
public void doSomething(IEnumerable<BaseClass> bc)
{
    // do something with bc
}

Information about co-variant in generic

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