The fiscal agent must be the "grantee" and maintain control of any grant award, and is answerable to the grantmaker for all report-back, etc. Legally, the 2 entities in a fiscal agent relationship must be closely mission-related. And if they ARE closely mission-related, then what is the for-profit doing in this scenario? Will they be named in the proposal as a direct subrecipient of all grant funds? They need to be.

My advice: Don't do this; you don't want to start you grantwriting career in ethically murky waters. First of all, it's a RARE grantmaker that would award a grant under an arrangement like this; I simply don't believe if you spell out the 'arrangement' that you will be able to be competitive for the grant. And if you are at all misleading so as not to get that reaction,...well, you never want to be involved with anything deliberately deceptive. Unless you have a prior understanding with the grantmaker assuring you that they would consider funding such a proposal, ethically I don't think you can take your client's money, as their chance of being awarded a grant with a setup like this is slim to nill. Or am I missing something?