(singular: fungus; plural: fungi)
A mushroom or a toadstool are examples of fungi. The cap you see is only part of the fungus. The main body of a fungus is a network of tiny underground threads. They grow into their food and release juices which digest it. The threads then take in the digested food and continue growing. Many fungi feed on decaying materials in the soil but some feed on rotten wood or manure.
When the network is fully grown it is ready to reproduce. At this time some of the threads grow upwards and produce the structures we call toadstools and mushrooms which release spores.