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

Imagine this—you’re stuck in bed with a fever, and an urgent document needs to be collected. Or maybe you’re traveling and need someone to handle an official matter for you. You can’t just send a quick text saying, “Hey, can you take care of this?”—you need something more official.

That’s where a letter of authorization (also known as an authority letter) comes in. This simple yet powerful document allows you to grant permission to someone you trust, making sure everything is handled smoothly in your absence.

In this guide, we’ll walk you through what an authorization letter is, when you might need one, and—because we love making life easier for you—share some ready-to-use templates. Let’s get started!

A letter of authorization (or authority letter) is a legal document that allows a third party (usually referred to as an agent) to act on behalf of the person writing the letter. In simple terms, when you write an authorization letter, you are legally permitting someone to act on your behalf. Since you remain directly accountable for their actions, it’s crucial to authorize only someone you trust.

Now that we understand what an authorization letter is, let’s explore a specific type:

An authorization letter to collect documents is a formal document that permits a trusted individual to retrieve important paperwork on your behalf.

This letter comes in handy when you cannot collect personal records, certificates, or business documents due to work commitments, travel, or illness. It ensures a smooth handover process and serves as legal proof that the bearer has your consent to collect the documents, preventing confusion or disputes.

Many institutions—including banks, universities, and government offices—require a properly written authorization letter to verify the identities of both the authorizing party and the recipient.

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?

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 mishap, the person can easily be tracked and held accountable.

For instance, you sent your junior to collect some documents on your behalf and give a letter of authorization for the same. On the way, he loses those documents. Now, he would be directly accountable for the loss and pay the compensation. If a written document were not given, you would be responsible for the loss.

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.

When you write a letter of authorization, you clearly specify the name of the person, the date of authorization, and the duties that you are authorizing the person to perform. So if, in the future, they do more or less than what they were supposed to do, the document can be referred to for verification.

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!

The date is an essential component of your letter, as it marks when the authorization takes effect. Including a clear and standardized date format, such as “February 21, 2025,” ensures no confusion. Next, the recipient’s details should be clearly stated. If you authorize a specific individual, mention their full name and title, if applicable. If the letter is directed to an organization, including the company’s name and any relevant department helps to process the request efficiently. While not always necessary, adding the recipient’s address can be useful for official record-keeping.

The salutation sets the tone of your letter. If addressing a company, a government agency, or an unfamiliar individual, a formal greeting such as “Dear [Recipient’s Name]” or “To Whom It May Concern” is appropriate. However, if the authorization is for someone you know well, such as a friend or a family member, a more relaxed approach, like “Dear [Recipient’s Name],” is acceptable. Choosing the proper salutation ensures professionalism and respect in your communication.

The letter’s core is where you explain the reason for the authorization and define its scope. Being precise about what you are authorizing is crucial to avoid misunderstandings. The purpose should be clearly stated in a direct sentence, such as “I am authorizing [Name of Authorized Person] to collect my bank statements from [Bank Name] on my behalf.” If the authorization involves financial transactions, package retrieval, or legal document signing, specify precisely what the person is permitted to do.

Equally important is defining the scope of the authorization. Instead of vaguely saying, “manage my accounts,” be specific—such as “withdraw funds up to $2,000 per month for household expenses.” If the authorized person is collecting documents, mention the exact documents they are permitted to retrieve. Setting these boundaries ensures that there is no overreach or misuse of the authorization.

This section adds further clarity by including any relevant details that guide the recipient on what actions they are allowed to take. If the authorized person needs to show identification, specify which forms of ID will be accepted. If the authorization is limited to a specific time frame, mention the exact dates. For example, “This authorization is valid from March 1, 2025, to March 30, 2025,” or “This authorization remains valid until revoked in writing.” Being explicit about these details prevents confusion and helps institutions enforce the authorization correctly.

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 team to collaborate 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. Bit makes your content come alive, be it a PDF file, OneDrive Excel sheet, Airtable databases, or more. For instance, if you attach a PDF file link to a Bit document or wiki, you can display the file as a visual embed and show the original format. It’s a smart way to weave various types of digital content together inside one document.

Once you complete your Authorization Letter, you can easily share it with the person you’re granting authority to, internal teams, and interested stakeholders via a shareable link or trackable link (Include a lead capture form, password protection, expiration date, etc.) You can also export it in various formats, including PDF, Word, etc.

Try one of our templates today!

1. How do I authorize someone on my behalf?

To authorize someone, you must write a formal authorization letter stating their name, identification details, and the task they can perform. The letter should include your signature and, if required, a copy of your ID for verification. You may need to get the letter notarized or provide additional documents, depending on the institution.

2. How do you give an authorization letter?

Once you have written the authorization letter to collect documents, print and sign it. Attach any necessary identification copies and hand them to the person you authorize. They should present the letter, along with their ID, to the institution or office where they are collecting the documents. Some organizations may request additional verification, so checking their requirements in advance is best.

3. How do you write an authorization letter to claim documents?

To write an authorization letter to collect documents, start with your name, address, and date, followed by the recipient’s details. Clearly state that you authorize a specific individual to collect the documents on your behalf. Mention the document names, the authorized person’s identification details, and any reference numbers if applicable. Keep the tone formal and concise, sign the letter, and attach a copy of your ID if necessary.