Yeah, the fax software typically needs a fax modem. Most later modems did fax as well, so I'm sure your '386 had a fax modem.

There are internet services for sending / receiving faxes.

Probably what Dan says is best, just scan and email. I remember once trying out a service that I email to and it sends it on as a fax. I think this was pre-web days.

I still have a fax for my business, but it sees action maybe once a month (besides spam faxes). I keep it for some of my old school clients that still fax orders in. I'm almost entirely done with the postal system too...

There was once some legalease about signed faxes being considered legal documents where other electronically transmitted docs are not "legal".