What is an Authorization Letter?

In order to grant authority and responsibility, this type of an authorization letter is written. This letter is used for:

  • Business purposes
  • Personal reasons
  • Credit cards
  • Bank deals
  • Insurance and medical
  • Consent for children etc.

While writing an authorization letter for any reason, you cannot make grammatical errors. Make use of right words to communicate in order to show your expectations and intentions. Your letter can be misused if the words specified by you have the double meaning. Generally, such letters are written for giving authority to take the decision on your behalf or to do anything on behalf of the third person.

It is important to give clear and precise instruction about the authority that you are giving to a particular person. Don’t forget to add your signature and date. You can issue an authority letter to your any friend, colleague, family member, junior employee etc. While writing such letter you should always make use of official and simple language because in such letter you are dealing with some serious issues.

The authorization letter is generally related to some legal matters and so while writing such a letter you need to refer relevant laws. Here are few questions for which your authorization letter should provide an answer:

  • What is the time limit for which you are giving an authorization?
  • What is the last date of authorization period?
  • What is the duration of authorization for a particular job?

If you don’t give answers to the above-mentioned question in your letter, then your letter can be misused. In case it is personal authorization letter then you should mention your relationship with the person to whom you want to give some authorities.

Tips to Prepare and Write Authorization Letter

The authorization letter is mainly written by the government organization, legal offices, banks etc. As discussed above, there can be many reasons to write such a letter. Whatever may be the reason, you need to follow the below-mentioned tips to effectively write an authorization letter:

  • Create a framework or outline of a letter which states the things which are to be included and which are not to be included in a letter.
  • Express in clear terms, the things which you want a reader to do on your behalf.
  • Say no to difficult words or the sentences that have more than a single meaning.
  • Avoid using long sentences because it can create misunderstanding or confusion in the mind of a reader.
  • Any kind of misconception can prove to be a serious issue, so make use of simple and short sentences.
  • Mention the deadline, if any so that reader can find it easy to know the date by which he or she needs to complete a particular task.
  • Select the deadline date as per your own convenience and do not give room to any kind of confusion.
  • While mentioning the date, don’t forget to add month and year in order to avoid any kind of misunderstanding.
  • In such letter, you can also write the methods in which you want the reader to accomplish particular assigned task.
  • Make use of language that is easy for a reader to understand.
  • No guess work in such a letter can work in your favour.
  • If you want reader to take your authorization letter seriously then maintain a professional approach in your letter.
  • The professional approach is essential even if the authorization letter is related to some personal issues.
  • While closing the letter make use of positive tone.

How to Prepare an Authorization Letter?

Till now, you must have understood what an authorization letter is all about. In order to prepare an authorization letter, you need to know few things like:

  • Generally, in such a letter there are three different parties involved. The first party is the owner or original rights holder. The second party can be an individual or a group with whom the first party is concerned for carrying out any kind of transaction. The third party is an individual who is selected to act in the absence of the first party and such individual is called as a proxy.
  • Generally, this kind of letter is addressed to the second party and the rights granted to the proxy are explained in the letter.
  • The handwritten letter will not have a great impact in comparison with the typed letter because it won’t appear to be like a professional letter. It is sometimes also difficult to understand the wordings used in a hand written letter.

How to Write an Authorization Letter Heading?

  • On the top left side of letter head, you need to mention your name and address. Follow standard business letter format.
  • Add your name in the first line.
  • Add your street address in the second line.
  • Add your city and state name with a zip code in the third line.
  • After mentioning name and address you should skip one line and then add the full date with month and year.
  • Again leave one line and then add the recipient’s name and address. Understand the recipient is the second party and not the proxy who is authorized to make a decision on your behalf.

How to Write the Body of an Authorization Letter?

  • The body of a professional letter always start with the right salutation. In salutation, you can add titles like Dr, Mr, Ms, Mrs etc. Write the full name of the person to whom you are addressing a letter.
  • The authorization letter should always be simple and short in order to avoid any kind of misinterpretations.
  • Give specific details about an authorization.
  • State the date from when an authorization is in effect. It is important to mention the beginning and ending dates.
  • Why you need the representative on your behalf? It is important to give a reason for the authorization.
  • Explain the areas, where you want to restrict an authorization. Mention the details about the financial decisions which even proxy cannot take on your behalf.
  • Conclude a letter by using the word like “Sincerely”. Leave two lines and then type your full name. It is important to leave lines in order to put your hand written signature.


How to Complete the Formality Associated with an Authorization Letter?

  • It is always a great idea to have a witness or to have your letter notarized.
  • Make use of blue or black ink to sign a letter. Allow your witness to sign the letter.
  • Give an original copy of a letter to the proxy.
  • Keep a copy of the letter with you, to maintain your records.


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