Restricted funds are those funds that are available for current operations but which may only be used for the specific purposes intended by the donor or sponsor of the project. They include those amounts received from non-university sources for student aid (scholarships) and construction.

For grants, restrictions are enumerated in the text of the agreement as well as in the accepted budget. Budget changes may sometimes be made through the Forestry Business Office in conjunction with Research Accounting under the provisions of Expanded Authority. Otherwise, changes in funds' use must have agency approval.

Categories of restricted funds are grants, contracts, foundation funds, "M" (gift funds), and "Z" (cooperatives).