Kingdom: Fungi
Subkingdom: Dikarya
Phylum: Basidiomycota
Subphylum: Agaricomycotina
Class: Agaricomycetes
Subclass: Agaricomycetidae
Order: Agaricales
Family: Nidulariaceae
Genus: Nidula
Species: Nidula niveotomentosa
Synonym: N. candida
Common name: Woolly Bird Nest
Nidula niveotomentosa is colloquially known as Woolly Bird Nest Fungus. They are small, about 5mm wide and 4 mm high and cup-shaped, and contain several shiny red-brown disc-shaped peridioles that resemble tiny eggs in a nest. The gasteriod fruiting bodies (also called peridia or splash cups) of this fungi is white and woolly on the outside and brown on the inside. They develop with a covering, which cracks open to reveal the spore cases (peridioles) within. After the covering of the peridia (splash cup) cracks open and a raindrop hits one at the right angle, the walls are shaped such that the eggs are expelled a good distance from the nest.
The surface of the peridioles is sticky and adheres to anything it lands on. The spores can then germinate there and start the life cycle over again.
The fruiting bodies found on a damp wood in forest floor litter are typically gregarious (growing together in groups, but not joined together).
The nests with disc-shaped peridioles inside
Thanks to Wikipedia for text and information: https://creativecommons.org/licenses/by-sa/3.0/