Wiktionary
n. Any of various fungus with an irregularly branched fruiting body apparently of jelly-like consistency.
WordNet
n. any fungus of the order Tremellales or Auriculariales whose fruiting body is jellylike in consistency when fresh
Wikipedia
Jelly fungi are a paraphyletic group of several heterobasidiomycete fungal orders from different classes of the subphylum Agaricomycotina: Tremellales, Dacrymycetales, Auriculariales and Sebacinales. These fungi are so named because their foliose, irregularly branched fruiting body is, or appears to be, the consistency of jelly. Actually, many are somewhat rubbery and gelatinous. When dried, jelly fungi become hard and shriveled; when exposed to water, they return to their original form.
A number of the jelly fungi can be eaten raw; poisonous jelly fungi are rare. However, many species have an unpalatable texture or taste. They may or may not be sought in mushroom hunting due to their taste, which is described as similar to that of soil. However, some species, Tremella fuciformis for example, are not only edible but prized for use in soup and vegetable dishes.