Fungi are more than just mushrooms and toadstools, which are the easy-to-spot parts of fungi. Underneath the surface where they are spotted lies a network of thin threads called hyphae. The collective name for fungal hyphae is the mycelium which can sometimes be discovered when you break off a decaying tree stump. The toadstools or mushrooms are the fruit bodies of fungi which produce and disperse spores.
Many fungi decompose wood and recycle nutrients from dead organic matter back into the environment. Fungi form partnership with trees and help tree grow healthily: the fungus sheathes the tree roots, its hyphae spread into the soil and get in the tree's root cells. Then, the fungus gets its energy from the photosynthesis of the tree's leaves. In exchange, the tree benefits from the nitrogen and phosphorous via fungal action in the soil. It's a win-win situation!