Letter of Authorization (Authority Letter): Definition, Examples & Steps!

Want to learn how to create a letter of authorization aka an authority letter? This blog post is just what you need! Read on…

Giving authority to someone in an official matter is a critical process.

You can’t just say ‘Hey can you do this for me’?

You have to create a properly written document for the authorization process.

You might need a letter of authorization when you’re sick and want someone else to take over your duties.

You might need one when you’re sending someone else to pick up important documents on your behalf.

The cases can be several, but the idea and format of it are the same.

In this article, we will throw light on the concept of the letter of authorization (or authority letter) and how you can create this document.

Psst..we will also give you samples for some common authority letters. So, let’s get right into it.

What is a Letter of Authorization or Authority Letter? (Definition)

According to the definition, a letter of authorization or authority letter is a legal document that allows a third party (sometimes referred to as an agent) to act on behalf of the person writing the letter.

In simple terms, writing an authorization letter means you are authorizing or legally allowing someone to act on your behalf.

When you do this, you are directly accountable for the actions that take place, so make sure you’re always authorizing a person of trust.

An authority letter is used in scenarios such as :

• You’re sick and want someone to cover your duties
• Authorizing someone to take charge of your bank account.
• Someone else is going to pick up some of your important business documents.
• Someone is traveling on your behalf.
• You want someone else to take charge of your business, etc.

A letter of authorization should contain all the necessary information in a precise yet humble manner. Let’s see why it is important to do so.

Importance of a Letter of Authorization or Authority Letter

An authority letter is an essential business document. Here’s why:

1. Gives Credibility to Your Word

A written formal document verifies and legitimates your word.

Let’s take an example of a letter of authorization when you’re sick and want your colleague to cover your work for two days.

Now if you just inform him and he accepts it, depending on your company structure, the boss might not know and the colleague could get in trouble.

If anybody says something, showing that letter of authorization is enough to not cause any further problems.

Read more: Formal Letter: What Is It & How to Create it?

2. Tracks Accountability

When you authorize someone to perform a task on your behalf, and they accept it, they are also accountable for the said task. In case of any mishappening, the person can easily be tracked and held accountable.

For instance, you send your junior to collect some documents on your behalf and gave a letter of authorization for the same. On the way, he loses those documents.

Now, he would directly be accountable for the loss and pay the compensation.

Whereas if a written document was not given, you would be held in charge of the loss.

3. Legally Binding Document

A letter of authorization consists of a person making a claim and signing underneath it. Both parties are required to sign the document. This makes it a legally binding document.

If and when a legal issue arises, such a letter can be used as proof in the court proceeding.

4. No Detail is Missed Out

When you write a letter of authorization, you clearly specify the name of the person, date of authorization together with duties that you are authorizing the person to perform.

So if in the future they do more or less than what they were allowed to do, the document can be referred to verify.

Speaking of details, what details should ideally be mentioned in an authority letter?

What language should be used?

How long should the document be?

Let us explore the answers to all these questions in the next section.

Read more: Business Letters: Definition, Types, Format, and Tips!

How to Write a Letter of Authorization?

Now that you understand the purpose and benefits of an authorization letter, let’s move on to crafting your own. The following steps will guide you through the process of writing a clear and concise document that effectively delegates your authority.

Step 1: Start with Your Information

A Letter of Authorization is like a permission slip for someone else to act on your behalf. The first step is to clearly identify yourself, the person giving the permission. Here’s what to include:

• Your Full Name: Write your entire legal name, just like it appears on your official documents.
• Your Contact Information: This typically includes your address and phone number. An email address is optional but helpful for the recipient to reach you if needed.

Here’s an example of how to format this in your letter:

**[Your Full Name]**

**[Your Address]**

**[Your Phone Number] (Optional)**

**[Your Email Address] (Optional)**

Pro Tip:

• If you’re unsure about including your phone number or email address, consider the recipient. Is it a formal organization like a bank, or someone you know well? For banks or official institutions, including your contact information allows for verification if needed.

Example:

Amy Jackson

123 Main Street

Anytown, USA 12345

(555) 555-5555

amy.jackson@email.com

Step 2: Date and Recipient

Let’s move on to step 2 of crafting your authorization letter! This step focuses on setting the stage for your message by identifying when you wrote it and who will be receiving it.

1. Date:

• Why it’s important: The date helps establish when your authorization becomes valid and ensures everyone’s on the same page.
• How to include it: Write the date in a clear and standard format at the top of your letter. For example, you can use “July 16, 2024” or “16th July 2024” (depending on your preference).

2. Recipient: The recipient is the person or organization you’re granting permission to act on your behalf. Here’s what you’ll need to specify:

• Full Name: Write the recipient’s full legal name to avoid any confusion.
• Title (Optional): If appropriate, you can include the recipient’s title, such as “Ms.” or “Dr.” followed by their last name (e.g., “Dr. Sarah Jones”).
• Contact Information (Optional): While not always necessary, including the recipient’s address can be helpful for official records.

Example:

July 16, 2024

John Smith
123 Main Street
Anytown, CA 12345 (Optional)
Dear Mr. Smith, (or Dear Dr. Jones, if applicable)

Step 3: Salutation

We’ve covered your information, the date, and who you’re sending the letter to. Now, it’s time for the salutation, which is simply a fancy way of saying “greeting.” This is where you politely say hello to the person or organization receiving your letter. Here’s how to choose the right salutation for your authorization letter:

Formal: If you’re writing to a company, government agency, or someone you don’t know well, use a formal salutation like:

• Dear [Recipient’s name (if known)],
• To Whom It May Concern,

Informal: If you’re authorizing someone you know well, like a friend or family member, you can use a more informal salutation like:

• Dear [Recipient’s name],
• Hi [Recipient’s name],

Step 4: Purpose and Scope

A letter of authorization is like giving someone a permission slip. But unlike a school permission slip, this one needs to be very clear about why you’re giving permission (purpose) and what exactly the person can do (scope). This is Step 4, and it’s crucial!

Think of Purpose as the “Why”

The purpose is the main reason you’re writing this letter. Are you authorizing someone to pick up a package for you? Sign a document on your behalf? Manage your bank account while you’re traveling? Be clear and concise. Here are some examples:

• “I am authorizing [name of person] to pick up a certified mail package on my behalf from the post office.”
• “I am authorizing [name of person] to sign a lease agreement for my new apartment.”
• “I am authorizing [name of person] to access and manage my bank account for the purpose of paying my monthly bills while I am away on vacation.”

Think of Scope as the “What”

The scope narrows down exactly what the authorized person can do related to the purpose. This is where you get specific. Are they allowed to sign any document, or just the lease agreement? Can they access all your bank accounts, or just the one for paying bills? Here’s how to make the scope clear:

• List specific actions: Instead of saying “manage my bank account,” you could say “access my checking account and make payments to the following pre-approved billers only: [list of billers].”
• Set limits: If there are any spending limits for the authorized person, mention them here. For example, “They are authorized to pay bills up to a maximum of $[amount] per month.”
• Be specific about documents: If they can sign documents, specify which ones. “They are authorized to sign the lease agreement dated [date] for the apartment located at [address].”

Step 5: Details and Duration

Once you’ve explained the main purpose of your letter, it’s time to get into the specifics. This is like giving your authorized person (called the “agent” in legal terms) a clear instruction manual.

What Details to Include?

• Be clear about what actions your agent can take on your behalf. Let’s say you’re authorizing someone to pick up a package for you. Mention the specific package details like the tracking number or description.
• If there are any limitations, mention them here. For instance, if you’re authorizing someone to access your bank account to pay a bill, specify the exact amount they can pay.
• Are there any documents your agent needs to sign or present? List them clearly to avoid any confusion.

How to Determine the Duration?: Authorization letters don’t last forever. Indicate how long your agent has your permission to act on your behalf. You can choose a specific date range (e.g., “from July 15, 2024 to August 1, 2024”) or a duration (e.g., “This authorization is valid for 30 days”).

Step 6: Closing and Signature

You’ve reached the final stretch of your authorization letter! Here’s how to conclude it properly:

Closing:

• Formal Closing: For a professional setting, use a formal closing like “Sincerely,” “Respectfully,” or “Thank you for your attention to this matter.”
• Informal Closing (if appropriate): If you’re authorizing someone you know well in a non-business situation, you can use a more casual closing like “Thanks,” or “Best regards.”

Signature:

1. Print Your Name: Right below the closing, type your full name. This helps ensure clarity, especially if your handwriting is difficult to read.
2. Sign the Letter: On a physical copy, sign your name in blue or black ink. For a digital letter, you can type your name and add “/s/” before it to indicate a signature.
3. Date (Optional): You can include the date you signed the letter next to your typed name for your records.

Step 7: Witness or Notary

We’ve covered the essential parts of your authorization letter. Now, let’s discuss the final step that adds an extra layer of verification: getting a witness or a notary public.

Why Consider a Witness or Notary?: A witness or notary isn’t always mandatory, but it can be a good idea in certain situations. Here’s why:

• Increased Credibility: Having a witness or notary verifies that you signed the letter willingly and understood its contents. This can be especially important if the authorization involves significant matters or large sums of money.
• Legal Requirements: In some cases, specific legal requirements might mandate a witness or notary for your authorization letter to be valid. This could be for things like accessing safe deposit boxes or selling property when you’re not physically present.

Witness vs. Notary: What’s the Difference?

• Witness: A witness is simply someone who observes you signing the letter and can confirm your identity. This can be a friend, neighbor, colleague – anyone you trust who is at least 18 years old and not directly involved in the situation you’re authorizing.
• Notary Public: A notary public is an official appointed by the state who verifies identities, administers oaths, and witnesses the signing of documents. A notary’s signature and seal carry more legal weight than a witness’s signature.

Here’s a quick guide to help you decide:

• For most everyday situations: A witness is sufficient.
• For high-value transactions, real estate, or if your state requires it: Opt for a notary public.

Sample Letter of Authorization

[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]

[Date]

[Recipient Name]
[Recipient’s Position]
[Company/Organization Name]
[Company/Organization Address]
[City, State, ZIP Code]

Dear [Recipient Name],

I, [Your Name], hereby authorize [Authorized Person’s Name] to act on my behalf in all matters related to [specific purpose or transaction]. This authorization includes, but is not limited to, [list specific tasks, duties, or transactions the authorized person can perform].

Details of the Authorized Person:

• Name: [Authorized Person’s Name]
• Address: [Authorized Person’s Address]
• Phone Number: [Authorized Person’s Phone Number]
• Email Address: [Authorized Person’s Email Address]

Details of Authorization:

• Purpose of Authorization: [Describe the purpose or transaction]
• Duration of Authorization: [Start Date] to [End Date] (if applicable)
• Scope of Authorization: [Specify any limitations or full authority]

I confirm that I am fully responsible for any actions taken by [Authorized Person’s Name] within the scope of this authorization. I also understand that this authorization remains valid until it is formally revoked in writing.

Please find attached copies of [Authorized Person’s Name]’s identification for verification purposes.

Thank you for your understanding and cooperation.

Sincerely,

[Your Signature]
[Your Name]
[Your Position] (if applicable)
[Your Contact Information]

3 Examples of Letter of Authorization (Authority Letter)

Just to make things clearer and simpler for you, we have jotted down the body text for some of the common letters of authorization you might need.

Example 1. In case of your absence

“I (your full name) am writing to authorize (name of the person to be authorized) to do (duties) in my absence.

I appreciate your assistance. Please feel free to contact me on (your number/email Id) if required”

Example 2. In case you’re sending someone to pick up documents on your behalf

“I (your full name) hereby authorize (name of the person to be authorized) to act as a representative on my behalf to collect (name of the documents ) from (name of the source).

You can find the identical copy of (name) to enclosed with this letter, to identify the person when they arrive to collect the documents.

This letter is valid until I provide any notice otherwise.

I am grateful for your cooperation on the matter. Please contact me on (contact number/ email id) in case of any inquiries.”

Example 3. In the case of bank authorization

“I (your name) writing to authorize (name of the person to be authorized) to manage my account on my behalf.

I will be out of the United States from May to July and thus all operations will be handled by (name).

I appreciate the bank’s support and for understanding my situation. Please feel free to call me on my number (XYZ) for any clarification.”

Bit.ai: The Ultimate Tool for Writing Authorization Letters

Now that you know all about authorization letters, what if we tell you that your next authorization letter can be a smart document with new-age appealing features?

Bit.ai brings all your information in one place by allowing you to organize information in workspaces and folders. You choose from 70+ pre-designed templates for creating your authorization letters.

Bit’s integrated documents make it easy for your entire team to work together intelligently across integrated smart documents. Collaborate on documents from anywhere in the world by co-editing, making inline comments, accessing version history, chatting via document chat, @mentions, and much more.\

You can insert rich media in your documents with just a click. Be it a PDF file or math excel sheet, you name it and Bit makes your content come alive. For instance, if you put a PDF file link, Bit’s smart cloud technology understands the type of document it is and will show it in the original format itself. It’s a smart way to weave together various types of digital content together inside one document.

Not just this, after completing your amazing document, you can easily share it with the person you’re granting authority to, internal teams, and interested stakeholders via a shareable link. You can also export it in almost all formats from PDF, Word, etc.

Try one of our templates today!

Wrap Up

In the middle of a hundred other tasks, making a properly structured and new-age letter of authorization can be a daunting task.

Well, with Bit.ai, document creation has made it easier than ever.

Now you can focus your time and energy on more important tasks and growth strategies.

Ready to create an LOA using Bit? Let us know how it goes by tweeting us @bit_docs!

Further reads:

Invitation Letter: What is it & How to Write it Perfectly!

Leave of Absence Letter: How to Write it?

Employment Verification Letter: Definition, Steps, and Format!

Apology Letter: Definition, Format, Tips & Examples!

Proposal Letter: What is it & How to Write it?

Thank You Letters: What are they & How to Write a Perfect One?

Sales Letter: What is it & How to Create it?

Letter of Resignation: Definition, Examples, and Format!

Complaint Letter: What is it & How to Create it? (With Examples)

How To Write A Letter Of Recommendation?