Diversity has various meanings but generally they reflect the variatio
n in species assemblages within a community. Species establish interpo
pulation relationships that lead to stable community structure, and st
able and resilient communities by definition contain a certain level o
f diversity. Communities with too great or too little diversity predic
tably undergo rapid change. Studies of fungal diversity have been limi
ted by taxonomic and logistical difficulties in collecting and definin
g fungal individuals and species. Succession of fungi on substrates, s
easonal fluctuations, inconsistent isolation techniques, and other con
siderations have also led to problems in assessing fungal species dive
rsity. Although the problem has now been identified it is not likely t
hat significant additions to our taxonomic knowledge will soon be usef
ul in saving rapidly disappearing ecosystems. However, calculations of
fungal diversity are not limited to taxonomic information. Several ap
proaches provide measurements of functional diversity in situations wh
ere taxonomic information is poorly defined. These include using binar
y biochemical and physiological descriptors to characterize isolates,
evaluating enzymatic capabilities for utilizing particular substrates
and extracting DNA or RNA from the soil or other substrate and probing
for genes that code for functional enzymes. Such functional approache
s can provide timely information on the contribution of fungi to commu
nity diversity and toward the establishment of predictors of community
stability. This paper reviews the problems in assessing fungal divers
ity and evaluates potential techniques for determining fungal diversit
y from a functional perspective.