This fungus is sometimes called the "Bird's Nest Fungus". The cup-shaped fruiting body resembles a bird's nest. The egg-shaped structures within the cup contain spores. It has a unique spore-dispersal mechanism. If a drop of rainwater lands in the cup, it drives the "eggs" out of the cup. A small threadlike strand on the lower surface of the "egg" catches on a nearby twig, blade of grass, etc. After a time, the covering on the "egg" opens and releases spores.
Bill Colonna Center for Crops Utilization Research, Iowa State University, Ames, IA USA