There are typically three types of fungi that occasionally appear on the surface of organic mulches. They are: mushrooms or toadstools, slime molds, and bird’s nest fungus. The names of these describe their appearance. Each form basically represents the “fruiting structure” of the particular fungus group.
The fungi live in the mulch and feed off the organic materials providing a biological benefit to the soil. There are no hazards to your plants due to the visible fruiting structures of the fungi. Ingestion of these visible fruiting bodies is not recommended. If the fungi are found to be visually objectionable, they can be raked off with a common garden rake and discarded. Placement with the household garbage or garden compost pile are suitable disposal options. If one elects to do nothing, they will usually dry/shrivel up with the onset of warmer and drier weather.