Bird's Nest Fungus - Crucibulum laeve

The lid was still on this bird's nest fungus and the sides of the cup were fresh and fuzzy. The fruiting body "nests" contain spore-filled periodoles ("eggs"). The nests, called peridia, serve as splash cups, and when raindrops strike the nest, the periodoles are projected into the air where they latch onto branches, leaves, etc. The nests were 1 -5 mm wide.

Spotted growing on wood chips throughout a rural garden.