Endowed vs Non-Endowed

What’s the difference between an endowed and non-endowed fund?

Endowment Funds
Assets are invested for the long term to provide a current source of income from the compounded effect of interest, dividends, and capital appreciation. Endowments are designed to last forever since the principal investment is never spent.

Non-Endowment Funds
Assets are invested for the long term to provide a current source of income from the compounded effect of interest, dividends, and capital appreciation, however the principal and income may be granted.