Download these Free Authorization Letter Samples to learn and then write your letter efficiently.
As the name suggests, an Authorization Letter is a formal letter of confirmation of authority. This authority can be given to an employee for higher designation, rank, or position, to make legal decisions, or to assign powers and duties. The Authorization Letter can be used in corporate environments, the insurance sector, banks, or for personal work. Thus, when you assign responsibility to any person, it is very important to carefully draft the Authorization Letter. Hence, below are certain guidelines on how to prepare this letter.
The Authorization Letter must be simple and written in clear language. Avoid using complex words which the reader might not understand or double-meaning sentences which might confuse the reader. Make a proper framework of things (segmentation) that you wish to include and things that are not so important and thus need not be included. Since the Authorization Letter is formal, make it look professional in all aspects.
Authorization Letter Writing
It is advised to type the Authorization Letter rather than hand-written as it is error-free, easy to understand, easily accessible, and also a soft copy of the same can be maintained. You might want to use it in the future for reference purposes, hence keep it in records in your system.
Write your name along with the complete address on the top left space of the page. Leave a single line space and mention the current date (dd/mm/yy). Next, mention the name and address of the recipient. The recipient is not the same to which the authority is assigned. Rather, he/she is the second party. The second part is the one with whom you and your proxy are dealing. Sometimes, there might be situations, when you don’t know the second party like in the case of the insurance sector. Then, you may address it as “to whom it may concern”.
Authorization Letter – Body Contents
The next section deals with the body of the letter. Give a proper salutation. Knowing the person to whom you are writing is advisable. By reading one’s full name, the person gets a sense of satisfaction that you know his/her name at least. The body of the Authorization Letter or the crux of the letter must be clear, specific, and precise. Avoid using long sentences and difficult words. The key information is the responsibility or the duty you wish to assign to the authorized person. Hence, that must be clearly stated. Moreover, remember to keep it brief and formal.
In the last section, mention the date; for instance when the authorization is valid. In some cases, it may come with expiry else it can be for life long. Thus, depending upon the situation, mention the dates as required. Along with this, mention the reason for drafting the Authorization Letter. Include assumptions, terms, and conditions, or any restrictions (if applicable). Lastly, conclude your Authorization Letter with a positive tone. A signature along with a full name is always preferred.
Make the font bold to highlight crucial information wherever necessary. Try to find a witness while you sign the Authorization Letter. This is to ensure that you are not drafting it under pressure. Give the original letter to the proxy and keep a soft copy of the same in the record.
Free Sample Authorization Letters
As the name states, an authorization letter is a formal document that takes authority from one person and gives it to another person either permanently or for a short period of time. You might think it’s a letter that you will not see commonly but in reality, we use authorization letters on regular basis. As a parent, if you allow your kids to go on a trip with other kids, you give them a permission letter which is in fact an authorization letter. If you are on parole and want to travel outside of the state, your PO will give you an authorization letter which will allow you to travel outside of the state for a specific period of time. In the similar manner, you can authorize your manager to take cash from company bank account on your behalf, or collect rents from the properties you own on your behalf or you can allow someone to get to your medical records without your presence.
Authorization letters are basically used on regular basis in organizations and companies. This happens more often that you might think. Company owners can’t conduct all of the deals themselves which means they need to give authority to specific people for conducting business on company’s behalf and that’s where a permission letter comes handy. It’s important to understand the true essence of an authorization letter and the true purpose is that when you are required by law to be presented somewhere, you have the opportunity to send someone else on your behalf and that individual is allowed to make decisions with your signed authorization letter.
Another important use of an authorization letter is when kids and teenagers are traveling aboard with a blood relative but not their parents. Many countries have a law that a minor can only travel outside of the country with either of his parents. If they are with an aunt or an uncle or a grandparent, the guardian must produce an authorization letter from you that allows them to travel with your kids. On the other hand, if a school wants to take the students on an educational trip, they are required by law to get permission from the parents of each student. This permission is given out on an authorization letter signed by the parents allowing the school administration to take kids on a trip outside of the school.
Now talking about the importance of an authorization letter, the most important element here is to give permission or authority legally to someone. There are many cases when someone gives permission to a third party and later they both end up in court because neither of them thought signing an official permission letter was necessary. An authorization letter doesn’t only include the scope and extent of the authority given to an individual but it also states the limitations i.e. the decisions that someone is not allowed to make or the date of expiration of the authorization letter.
Writing an Authorization Letter:
The tone of the letter should be formal:
An authorization letter is a formal letter that permits someone to act on your behalf. This means it is important that this letter should be written formally. Although it’s not unusual to write it by hand, and it’s still usable if the matter ever ends up in court, the judiciary system might have some concerns about handwritten authority letters. To make things clearer and more professional, you should type the letter and print it out for your signature.
Choose the type of authorization letter:
There are hundreds of types of authorization letters, and each of them serves a different purpose. When you want to prepare a permission letter, you should understand what its purpose is and what information should be included in the letter. For instance, your employees conduct business deals on behalf of the company so they need an authorization letter on company letterhead allowing them to close deals, and this permission letter should portray all relevant details according to the type of business. If your manager has your permission to take cash from your bank account, he should have a permission letter stating that you have allowed him to take cash on your behalf.
Full disclosure of the authority:
In the same manner, an authorization letter must include the scope of the authority given by a company or an individual to a third party. If the permission is only for giving a sales overview and the employee needs to get permission before closing a deal, the letter should state that. If an accountant is allowed to take company cash for office expenses, the letter must include the limit to which the cash can be handed out to him. One of the most essential elements to include on an authorization letter is the date on which it was signed and its expiry in case it’s a limited-time permission letter.
Providing full details of the third party:
When you are granting some kind of permission or authority to someone, they can be an individual who has the permission to act on your behalf and make decisions or it can be a company that you allow to trade your shares and stocks. In either case, an authorization letter should include all the details of the third party. This part usually includes; the name of the person receiving the authority, their company name, contact details, and address.
Signature of the person giving authority:
Once all the relevant and necessary details are added to the authorization letter, it’s time to proofread it and remove mistakes and typos. Once you are happy with the final draft, get it printed and sign it. The person who is giving authority to a third party needs to sign the permission letter at the end with his full name, the date on which he signed the letter and a stamp. If there were witnesses present at the time of the deal, their details and signatures are also required to be put on the letter as well.