The origin of the word "fungo" is unknown and argued upon as there are many possible options as to the origins of this unique word. It is assumed by many to be derived from the Scottish word fung meaning to pitch, toss, or fling. This would make sense, as fungo bats are designed to do just that. Or, the alternative to this origin is that fungo comes from 1937 where David Shulman, writer for the American Speech, said, "My guess is that the word, which is baseball slang, may be explained through the elements of a compound word, fun and go." Lastly, a third belief is that the word fungo comes from an old game, similar to that of baseball, where the players used to chant, "One go, two goes, fun goes." 
A fungo bat is a specially designed bat used by baseball and softball coaches for practice. The etymology of the word fungo ( /ˈfʌŋɡoʊ/) is uncertain, but the Oxford English Dictionary suggests it is derived from the Scots fung: to pitch, toss, or fling.[26] A fungo is longer and lighter than a regulation bat, with a smaller diameter. The bat is designed to hit balls tossed up in the air by the batter, not pitched balls.[27] Typical fungo bats are 35 to 37 inches (89 to 94 cm) long and weigh 17 to 22 ounces (480 to 620 g). Coaches hit many balls during fielding practice, and the weight and length allow the coach to hit balls repeatedly with high accuracy. The small diameter also allows coaches to easily hit pop-ups to catchers and infielders along with ground balls due to better control of the barrel of the bat.
The Wright & Ditsons Lajoie baseball bat. This bat had a normal size barrel but had two knobs on the handle. The lowest knob was at the bottom of the handle and the other knob was roughly two inches above the lowest knob. This was designed to have better spacing between the hands due to the knob being in the middle of the grip. This also gave batters an advantage when they choked up on the bat, because the second knob provided a better grip.

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.
The fungo is used by a coach to hit balls for defense practice. It is lighter weight, so less fatiguing to hit ball after ball. The fungo sheds its weight above the hands. The severely tapered barrel to drops weight and maintains a high moment of inertia. While the bat would be at greater risk of breaking if used in a live batting exercise, it is safe to use in practice because there are much fewer mis-hits.
Players can also create complex holes such as ‘two-part holes’ where the players must hit or reach one object before attempting to shoot at the hole. For example, a ‘two-part hole’ could consist of hitting the scoreboard first, and then once they have hit the scoreboard they must hit the ball back to home plate, that would be one hole with the player with the fewest strokes winning the hole. ‘Two-part holes’ are typically saved for the last hole in order to make things more complex and difficult on the leader.
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