Fair market value (FMV) is typically the current price an asset or a property could be sold in the open market.
For instance, an organization holds a charity dinner at $500 per person for the meal. The actual price of the item is $200. What happens here is that the person purchasing the dinner for $200, and is contributing $300. Now, the fair market value here is $200 which happens to be the actual/current price of the item.