This is the drill we ran all through high school. It is the most time effective and skill intensive way to warm up a team, but your boys must be able to play catch! Fungo-ers stand in the "fungoe circles" that any good field has (and if it doesn't, you know where they're supposed to be - just outside of the home-plate dirt circle, towards the dugouts). The catch to this method is this - you have two first basemen, allowing both sides of the infield to throw across. Herein lies the only danger - one of the firstbasemen has a lengthy throw back to a shagger, so caution must be excersized (a catcher with a good head on his shoulders really helps).
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."
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).
The main goal of the game is to hit it to the pin in the least amount of strokes, similar to golf. Holes can consist of a certain sign in the outfield, in the tarp tunnel, off of the foul pole, onto the pitchers mound or off of a yardage marker on the outfield wall; it can really be anything on the field that can be hit without breaking. There can even be 2 part holes such as: First you have to hit the ball off of the scoreboard, then you have to hit the ball off of the right field foul pole.