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.
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.
How to Write a Letter Of Authorization or Authority Letter? (Structure, Format & Tone)
When you start writing a document, framing a structure is the first step. It is also the most crucial because, with an improper structure, your message might not be delivered in the right manner.
There are two types of letters of authorization.
One when you know the recipient and it is directed in a specific place, and the other where you give a general claim allowing a person to perform a task on your behalf if and when required.
Structure & Format of a Letter Of Authorization (Specific)
Your full name (Single spacing)
Your address (Don’t forget to add the ZIP code)
Recipient’s full/formal name (With the right title i.e Mr, Mrs, Ms, Dr, Hon. Etc)
Begin the letter by specifying the name and account number/other identification verification of the person to whom you have authorized to perform the task.
Then concisely state your reason for delegating the task to the mentioned person. (Why are you authorizing another person should be mentioned here.)
Specify the duties that the person has to perform on your behalf. This is done so that the agent does not take advantage of the given power and do more or less than what they were authorized for.
Conclude the letter with gratitude for allowing another person to perform tasks that were originally yours.
Your full name
Structure & Format of a Letter Of Authorisation (General)
To whomsoever, it may concern
Your name, the name of the person who you are authorizing, and the reason behind it.
Acknowledge their gratitude and mention your contact details in case they have any queries.
Your full name
The Tone of a Letter of Authorization
- Since it is used in formal operations, the tone of a letter of authorization should also be formal.
- It is mostly typed and printed rather than handwritten to have more impact and act as a strong proof.
- The tone should be authoritative rather than demanding. For instance, you say ‘I hereby give authority to Jack to perform XYZ task on my behalf ‘ rather than ‘Jack will perform my duties.’
- The body should be short and clear. Don’t drag on to explain your reason for your absence. Give your case by using not more than 3 lines. Also, don’t let it get too personal.
- Mention a CTA. Always give your contact details in the note, in case something goes wrong. Don’t forget that even after delegating duties, you are accountable.
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.
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!
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