I'm making gingerbread for display in August. I normally use sugar paste made with gelatin for sculptures bud can't achieve deep colors with it. If I model decorations out of deeply colored fondant will they still look great in August?
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Yes, it will fade, though not all colors and brands will fade as dramatically as others. I had cakes on display in my shop for many months (fondant colored with CK Products' colors mostly) and it held up well. But some colors (pink, especially) are really prone to fading. I used a regular Wilton pink in fondant in a class recently and it faded to almost white overnight. So be sure to use "no-fade" versions of the colors when you can find them.
I find lavender changes color for me but takes about a week when it's on the cookie.......
YES, fondant WILL fade... my pale blue and wilton lavender ALWAYS fade... 
I leave display cakes in the store all the time to get students to sign up for classes, and I am always sad that they fade... BUT it does get me to make new cakes...