Glossary · View all terms →
Fair Market Value (FMV)
The price a willing buyer would pay a willing seller — almost never used for vehicle donations.
What it means
Fair Market Value applies to vehicle donations only in narrow cases (the charity uses the car for its mission, or makes 'material improvements' before sale). For 95%+ of vehicle donations, the deduction is the actual auction sale price, NOT the FMV from Kelley Blue Book or Edmunds. Many donors mistakenly assume they get FMV — IRS Publication 4303 makes the rule clear.
Related terms
Ready to donate?
60-second form, free pickup nationwide, IRS Form 1098-C after sale.