Temporarily restricted net assets are the assets of a nonprofit entity that have a special restriction imposed by the donor. There are two variations on this restriction, which are as follows:

Usage restriction. There is a restriction on the assets that requires the assets to be used in a certain way, such as for a student meal program.
Time restriction. There is a restriction on the assets that will be removed after a certain amount of time has passed, such as a five-year block-out period.