It's a slime mold called "Dog Vomit Fungus". Read he

http://www.personal.psu.edu/sam21/dogvomit.htm


hitesh wrote:
Hi,

Over the past few days, these things have been popping up in our mulch
beds and the base of a tree. I'm not positive, but I think each one
shows up overnight. Can you please help identify them? Do I need to
worry about this?

http://hitesh.smugmug.com/gallery/1685936/1/82756064
http://hitesh.smugmug.com/gallery/1685936/1/82756040

Please help !

Thanks,
Hitesh