Fungo bats have been around since the beginning of baseball and as most of us may know, baseball was said to be invented by Abner Doubleday in Cooperstown, New York during the summer of 1839. Since fungo bats were much easier to swing and gave off a ton of pop, they were almost seen as cheating back in the day. In a book from 1897 named "The Technical Terms of Baseball," the sportswriter Henry Chadwick stated,"The weakest batting is shown when the batsman indulges in fungo hitting." It wasn't until baseball bat regulations came around that fungo bats were only used by coaches and parents. 

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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.
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.
If you have attended a Major League Baseball game in the last 15 years, pregame infield practice, known simply as infield, may be unfamiliar. All but abandoned by the early 2000s, the ritual lives on at the C.W.S. and at college stadiums all over the country. On Monday night, the routine will be repeated before Virginia takes on Vanderbilt in the first game of the finals.
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.

There are many advantages to using a fungo bat. If you are a coach or a parent looking to improve your player's defensive skill set, you're going to want and need a fungo bat. A normal adult wooden baseball bat will weigh around 27-31 ounces, and after a couple of rounds of pop-flys, it is going to feel like you just went through a full-on workout. With the help of a fungo bat, you will be able to hit ground balls and pop flys all day without getting fatigued.  The barrel on a fungo bat will typically be 2 1/4 inches in diameter which greatly helps increase your control over the bat through the hitting zone. While the barrel has a much more thin diameter, it is also much longer in comparison to a normal wood baseball bat. This larger hitting surface and smaller barrel combine to give coaches and parents quick swing speeds with precise accuracy. 
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).
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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