Authorization Letter Templates (How To Write)

An authorization letter is a legal document representing another person to perform particular tasks on your behalf.

The letter states that the third party has permission to act on your behalf. Still, you will be responsible for those actions and whatever consequences will arise as a result. As such, this authority should only be granted to persons you trust.

Since it allows the third party to act upon your rights, the letter should be approved by both parties through a signature. This letter is usually used when you cannot perform a particular task because of unavoidable circumstances. For example, you could be in another state or away when the task should be performed.

The parties involved in creating an authorization letter include:

• The original rights holder is sometimes referred to as the principal. They donate their authority to the third party, instructing or allowing them to perform specific tasks on their behalf. The principal could be a minor’s parent, a bank account holder, or a sick person.

• The party transacting with an original rights holder is the addressee of the authorization letter, e.g., they could be a financial institution or a company. The letter is presented to them that the third party has permission to act on behalf of the original rights holder.
• The person to whom the principal donates their authority. Often, the third party is the principal’s legal representative, the parent, or a close friend.

Because of the formality of this letter, you must know how to write it. This article can help you write an effective authorization letter. It discusses when you might need one, how to write it, and what to consider.

Given below are authorization templates:

Common Situations When an Authorization Letter is Needed

While it may seem unlikely, you may have to prepare an authorization letter in many instances. It can be used whenever you anticipate you cannot perform particular tasks due to lack of time, distance, or being incapable.

The following are some instances in which this letter can be used:

• As a parent, you may allow childcare workers to make decisions on your behalf when there is an emergency regarding your child.
• You can issue these letters to proxies when your children travel with a third party. Authorization helps the third party verify that the child is legally in their custody, which helps avoid issues of child custody and allegations of child trafficking.
• When you want a third person to access your medical and other personal information.
• You can use the letter to allow your legal representative to conduct bank transactions on your account when you are away.
• The letter can be used when you are too busy to handle important but time-sensitive transactions.
• The letter can temporarily allow a third party to make business decisions in your company.
• When you are sick, you can use an authorization letter to allow a third party to perform your duties at work.

Beyond formally allowing the third party to perform particular actions, your letter serves other functions. If you are using it for your business, you may have to keep it in your records as it may contain important information regarding your transactions. 

The following are some of the reasons why an authorization letter is essential:

Tracks accountability

Typically, you will be held accountable for your decisions, especially when performing tasks at your workplace or in a business setting. Similarly, the proxy you authorize to act on your behalf can be held accountable for their actions. You can use the letter to prove that the proxy performed a particular action on your behalf. 

For example, suppose you authorized a third party to access medical documents when you were incapacitated, and an unauthorized party accessed the documents. In that case, the proxy can be held accountable.

Gives credibility to your words

The third party must be authorized to perform any action, especially regarding work performance or personal information. With an authorization letter, you can inform your medical provider that your proxy can access your medical information. Verbal statements may be problematic, especially when proof of the statement is needed for an action to be performed. The written authorization makes it easier for the third party to prove they have the authority to perform the act.

Ensures no information is missing

The information you provide in your letter is often accurate and up to date. It also explicitly states what your proxy is allowed to do. The letter should contain the proper names of the parties, the date the letter was written, and the documents that will be involved in the transaction. You can use the letter as a reference to confirm whether your representative acted within the authority you provided in the letter.

Acts as a legally binding document

You should sign your letter; this makes it a legally binding document. Should there be a liability issue, the letter can be provided as proof of a legally binding agreement.

Now that you know when you can use this letter, you need to know how to write it. Your letter should be simple and accurate. To verify its legitimacy, you must provide all the necessary information, including dates, names of parties, and addresses. 

You can follow the guideline below when writing your letter:

Specify the duties of your representative

One of the essential parts of your letter is the duties you expect your representative to perform. You should list them as precisely as possible. If you want your proxy to sign your checks or access medical records, you should state the terms in your letter. 

For example:

“I, Mary Tess, authorize Jessica Howard to perform any acts necessary in case of a medical emergency concerning my child, including access to her medical records.”

Give the dates for authorization

You should ensure you mention the period your letter covers. You can mention exact dates or the start and end dates. You must mention these dates because the letter can be used to identify the person accountable for particular actions or decisions. 

For example:

“ This letter will be effective from February 10, 2023, to February 20, 2023.”

Identify the reason

While it may seem unnecessary, you should explain why you cannot perform the task you want the proxy to perform on your behalf. This reason is important, especially for workplace duties; it also contributes to your letter’s legitimacy. 

For example:

“I authorize Jessica Howard to make medical decisions for my daughter, Penny, on my behalf, for I will be out of the state on a work conference.”

Explain any restrictions

Suppose your letter allows your proxy to perform particular actions. In that case, it is advisable to indicate any restrictions in the letter to avoid confusion. You should indicate the restriction to let the addressee understand the scope of action within which your proxy can act. 

For example:

“The proxy is not allowed to disclose medical information to any individual besides my child’s doctor and healthcare givers.”

Add closing remarks

Once you have specified the conditions, dates, and reasons, you can conclude your letter by informing the addressee how to contact you. You can then close it with a formal salutation such as ‘sincerely.’ 

For example:

“Please contact me via phone or email if you require any clarifications. I appreciate your assistance in this matter.
Sincerely,
Mary Tess”

Authorization Letter Examples

In case of absence

“I, John Gates, am writing this letter to authorize Peter Garrot to take over my duties as the Finance Manager between June 13, 2023, and June 30, 2023. I shall be absent as I will attend a company conference during this period.

Your assistance in this matter is highly appreciated. Please contact me at [email protected] if you have any questions.”

In case of bank authorization

“I, Judy Wright, authorize Grace Wells to manage my account #467348 from August 1, 2023, to September 1, 2023, on my behalf.

During the above period, I shall be out of Canada and therefore allow Grace Wells to perform all actions attendant to the account.

I appreciate your cooperation and understanding in this matter. Please contact me on 354-15778 if you require clarification.”

In case you are sending someone to pick up documents on your behalf

“I, Mathew Benning, authorize Joseph Connor to act as my proxy to collect my birth certificate from the Birth Registrations Office. I have enclosed a copy of John’s identity card for easy identification when he comes to collect the documents.

This letter is valid between July 25, 2023, and August 5, 2023.

Thank you for your cooperation. Should you have any queries, please contact me at 555-7893.”

You must ensure you provide all the relevant information when writing your letter. You also need to provide sufficient information for the recipient to identify your proxy and the actions they are allowed to take on your behalf.

You can achieve the above using the following tips:

Notarize the document

It is essential to notarize your document because it shows that you signed it voluntarily. A notary public will verify your identity and confirm that you are signing the document of your own volition and not under duress. The notary public should be legally authorized to attest to documents in the state; however, they should not be a party to the authorization transaction. Because of the above conditions, a notarized document is often considered more credible as the notary is not a beneficiary of the transaction.

Keep the letter short and precise

Your authorization letter should be at most one page long. You should only provide the most relevant information, as the addressee will need to understand why you are writing the letter by simply scanning it.

Format the letter properly

Since your letter is a legal document, you should always use a formal tone and format. The most preferred format is the block format, which has no indentations. The salutation, first paragraph, and other paragraphs should be evenly spaced.

The tone of the letter

You should maintain a formal tone from the beginning to the end of the letter. You should address the addressee by their title, i.e., Mr./Ms. Your conclusion should also be formal; you can use “yours faithfully” or “sincerely.” You should also add a call to action by leaving your contact details and stating that the recipient can contact you if they need clarification. Often, leaving instructions allows you to express that you are open to inquiries.

Type your letter

Typically in formal settings, typed letters are preferred over handwritten ones because they are more professional and easier to read. You should also type your letter because it may be used as part of court records should a legal issue arise.

Give the original letter to the proxy

You should give the proxy the original letter, as original documents are preferred for verification instead of copies. Your proxy may need to verify some details; most offices prefer originals or certified copies in such cases.

Keep a copy of the letter

You should have a copy of the letter in case the need to use it arises. You may be required to produce it as proof where you have to verify the authority you gave your proxy. You can also keep a copy for your records.

Use a template

Templates are helpful if you do not know where to begin when writing your letter. You can use a template to help you guide on the format, tone, and information you need to provide. It also helps you save time as you will only edit it as opposed to starting from scratch.

An authorization letter should make official tasks more convenient for you. If you may want someone to handle your bank accounts or make medical decisions for your child while you travel, an authorization letter is the most appropriate document. As such, it should be well prepared to help you avoid the challenges your proxy may face when performing the tasks you have authorized them to act upon.

You should begin by indicating the intended addressee to ensure your letter achieves its objective. You should keep your letter short, only including the relevant information. It should contain a declaration that you authorize your proxy to take particular actions on your behalf. You should also mention any restrictions on your authorization. You must mention specific tasks to make communication easier for the addressee and the proxy.