"List other scholarships you have applied for"...and "have been awarded"

Many scholarships ask you to “List other scholarships you have applied for” and “which you have been awarded and the amount”. Why do they ask these questions? How do they use this information? If I’m the candidate that best meets the qualification for their scholarship and best honors their organization, then I should win it regardless of my performance on other scholarships – win or lose. Are they using the information to “spread the wealth”? That is, am I less likely to win a given scholarship if I have already been awarded a scholarship(s) and/or a large amount? Likewise, am I MORE likely to win if I have been awarded no or few scholarships / amounts?

My daughter has run into these questions, especially with local scholarships. Usually they just ask what you’ve applied for, not what you’ve won. She only lists a couple even though she’s applied for many.

I am thinking they want to know you are casting your net wide in terms of finding money for college. But since this is new to me, too, maybe someone else has more reliable information.

My son worked on about 10 local scholarship apps, and they asked about income, household size, siblings in college, and scholarships that have been awarded.

Some asked about FAFSA EFC, how much the school costs per year and how much the parent and student can contribute towards college costs.

For many outside scholarships, there could be a need component that is a factor, and that’s probably why applying for and winning other scholarships is asked about.