I've heard of dog-vomit fungi afflicting wood mulch, but I've never seen it. If this is that, it's not harmful to plants or people; it just breaks down the wood mulch.

Its one of the cup fungi. Will probably be back next year. Harmless- but don't eat them (not that that ever crossed your mind with these strange lil fellers).

Bird's nest fungus. Came up recently on the gallery for this forum, too... see the linked thread.

Patrick Alexander

Here is a link that might be useful: another bird's nest fungus...

Daisy, when you see one of the slime molds called 'dog vomit fungus' you will know it. They tend to look exactly like dog vomit!