There are limitations to how much and where a baseball player may apply pine tar to a baseball bat. According to Rule 1.10(c) of the Major League Baseball Rulebook, it is not allowed more than 18 inches up from the bottom handle. An infamous example of the rule in execution is the Pine Tar Incident on July 24, 1983. Rules 1.10 and 6.06 were later changed to reflect the intent of Major League Baseball, as exemplified by the league president's ruling. Rule 1.10 now only requires that the bat be removed from the game if discovered after being used in a game; it no longer necessitates any change to the results of any play which may have taken place. Rule 6.06 refers only to bats that are "altered or tampered with in such a way to improve the distance factor or cause an unusual reaction on the baseball. This includes, bats that are filled, flat-surfaced, nailed, hollowed, grooved or covered with a substance such as paraffin, wax, etc." It no longer makes any mention of an "illegally batted ball". In 2001, MLB approved the use of Gorilla Gold Grip Enhancer in major and minor league games as an alternative to pine tar.[23][24]
They can either be wood or aluminum. I encourage you to use a wood one. If not, I will make fun of you like I do my good friend Bill Booker at LaSalle-Peru H.S. for using his aluminum one. If you choose the wood fungo, I would recommend taping the barrel.  If you hit a good number of fungoes, the tape will increase the durability of the bat. I took the tape off of one once. The barrell was like sawdust, but I re-taped it and it was ready to go.  One season, I figured it out, between the  high school, American Legion, an junior high seasons I had hit over 10,000 fungoes. Tape it up!
Fungo bats are typically only used by coaches, to consistently place grounders and pop flies to their fielders for practice purposes. And with a fungo bat in their hands, some coaches can pull off wicked accuracy – as one story goes, the late California Angels player and coach Jimmie Reese once shot an 82 on an 18-hole golf course using nothing but a putter and a fungo bat.
Four historically significant baseball bats showcased in the National Baseball Hall of Fame's traveling exhibit "Baseball As America". From left to right: bat used by Babe Ruth to hit his 60th home run during the 1927 season, bat used by Roger Maris to hit his 61st home run during the 1961 season, bat used by Mark McGwire to hit his 70th home run during the 1998 season, and the bat used by Sammy Sosa for his 66th home run during the same season.
First base fungo hits fly balls to center field (helps here if both fungo hitters move up and apart, hitting from about the front of the mound extended towards the bases). Center throws to second, second baseman is cutoff (for us it was, anyways - change to suit your style). Third base fungo hits balls to left field, who throw to third, with a second shortstop as cutoff (but you really don't need one, if you're shorthanded).
Alright, let’s get to the drill. “Fungo Baseball/Softball” is a great drill for fielding and base running.  It’s the same as playing an inter-squad scrimmage, except the pitchers do not throw live, and the hitters toss the ball to themselves and hit fungoes where they want.  It is set up as a competitive game with an endless amount of teaching points. I really like to do this drill early in the season in order to simulate some real game like situations, and also when you’re on a hot streak and you’re looking to keep your team sharp on the little things like relays, backing up, and communication.

Next, third base fungo hits to left, who throw to second, SS cuts (make a few of these the "cut off a double on a ball hit into the corner" variety - timing becomes important here, as the other fungo needs to hit many fewer balls than the fungo hitting to left). First base fungo hits to right, who come home, first baseman is cutoff, 60' from home (about pitchers mound - this postitioning puts him out of harms way should the SS overthrow second). On the throws home from right, make sure that they are the "normal" kind - hit the cutoff man, and don't hit too many. The right fielders will get to go again, as they're last throws will be the "do-or die" variety.
Another variation of playing is setting a target (i.e. home plate), and that is the hole for the entire game. For the entire game players go to a different part of the field and try to hit home plate in the fewest strokes.To make the game more interesting players can create certain hazards or obstacles that the players must avoid hitting while making their shot. If a player hits a certain hazard then they may be penalized one stroke, a player can also lose a stroke if he loses their ball while taking a shot.
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