No, the basis is not the fair market value - the basis is needed to determine how much is deductible when you donate property:
If you contribute property with a FMV that is less than your basis in it, your deduction is limited to its FMV. You can't claim a deduction for the difference between the property's basis and its FMV.
If you contribute property with a FMV that is more than your basis in it, you may have to reduce the FMV by the amount of appreciation (increase in value) when you figure your deduction.
For example, if you donate a used handbag that you paid $500 for (your basis)- now because it is used and worn the FMV is $300. Since the basis is more than the FMV, your deduction is limited to the FMV. If, however, you donated a designer handbag that you paid $500 (your basis) but now it is a collectible worth $1,000 your deduction is limited to the $500.
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