A fungo bat is used by the coach to hit ground balls or fly balls to his team. All throughout high school and college many players use fungo bats to play fungo golf. This is when each person has a fungo bat and a baseball and they pick out targets around their field or complex and basically play it in the same manner as golf. Fungo bats should not be used to hit a pitched baseball because they are much weaker than normal bats and will break much much easier.
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Secondly, the first base fungo hits balls to the third baseman, who turns a double play with the second baseman to the normal first baseman, while the third base fungo hits balls to the shortstop, who throws to a shortened deep firstbaseman (this means that the deep firstbaseman stands closer to the shortstop than normal, so that the throw across this infield is the correct distance - this does NOT mean that the deep man stands any closer to the normal first base position - this length should always be sufficient)
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.