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What Is an Authorization Letter?
When you give someone the power to act on your behalf, they need to have proof that you gave them the authority to do so. One can do this by writing a letter of authorization. An authorization letter is a written confirmation that indicates the permission granted by the writer to another party to take specific procedures for him or her. Note that there will be three parties involved in this arrangement—the writer as the first party, the recipient as the second party, and the authorized or proxy as the third party.
The writer of the letter holds the original rights to carry out a specified action. On the other hand, the recipient of the letter is the party which the first and third party is transacting. It can be a group, a business, or an individual. Lastly, the third party is the person chosen as a representative by the first party in his/her absence.
In this day and age, messaging applications and email service providers have been an avenue for businesses and individuals to deliver a message to another entity. Since it launched last August 9, 2011, Messenger, a Facebook-developed messaging application and platform, has 1.3 billion monthly active users as of 2017. Meanwhile, an email service provider we refer to as Gmail has 1.5 billion users since its creation last April 1, 2004. Regardless of the medium you make use of, be it digital or not; the end goal is to convey a message to people wherever they are. For an authorization letter, you may opt in emailing it or send a hard copy of the letter.
When Do You Pen an Authorization Letter?
One can write an authorization letter for various reasons. Regardless, the primary goal of writing this letter is to provide a third party the authority to act on someone else’s behalf temporarily. These transactions or processes may cover financial matters, appointments, businesses, or personal concerns. An authorization letter is one type of letter, but it does not end there. This type of letter also has different kinds that will serve various purposes to businesses and individuals. Discover the different types of authorization letters and under what circumstances you should write them.
What Should You Include in an Authorization Letter?
The continuous rise of technology makes letter-writing seem out of date. With all the existing social media sites, sending short and hastily written messages has become a norm. Nevertheless, one should never neglect the importance of letters. For some people, personal letters will make them feel loved and special. On another note, this document has become an indispensable medium in businesses. Letters help convey messages to another individual with professionalism and formality if they are wholly and correctly written. That is why you need to have a clear understanding of the essential elements of a letter before you start drafting it. Listed below are the things you should include in your authorization for it to fully serve its purpose.
Regardless of the type of letter, you are writing, the first element that should appear on the document is the return address or the heading information. The first line of this component is your name, followed by the street information on the second line, and the city, state, and zip code on the third line. After this, leave one line blank and enter the full and current date. However, you should note that there won’t be a need for you to include the return address in your letter if you make use of a company letterhead.
The next thing your authorization letter should reflect will be the recipient’s information. This element follows the same format as the return address. Bear in mind that the recipient of the letter is the second party whom you and the person you authorized will be making transactions or dealing with.
Being courteous to the addressee is essential when sending out messages, no matter what communication tool you utilize. One couldn’t just directly jump into expressing their concerns to the recipient without addressing them appropriately. Therefore, show your courtesy and start your message with an appropriate salutation. If the addressee has a title attached to their name, make sure to include it in the salutation. If you don’t know the name of the party you and the third party will be dealing with, scratch the “Dear Mr./Ms.” and write down “To Whom It May Concern.”
One of the most crucial elements of a letter is its content. It delivers the message you want to convey to the recipient—which is the primary reason why you wrote the letter. For an authorization letter, the first paragraph should specify the duties you permit the third party to carry out on your behalf. These may include signing legal documents, claim a vital document, enter into an agreement, temporarily manage your bank account, or authorize a medical procedure. Moreover, you should state the full name of the authorized person in this section.
Aside from the current date, another important date your authorization letter should specify is until when it is effective. Keep in mind that you only grant the third party the right to represent you for a particular period only. Thus, it is important to specify the starting date and end date of the authorization.
Reason for Authorization
Although understandably, you need someone to represent you because of your absence, you need to be more specific about it. It is vital to include in your authorization letter the reason why you won’t be able to present yourself during a specific time frame. Also, the letter should clarify the limitations on the authorization that the proxy should adhere to.
Lastly, the authorization letter should end with a complimentary close. It is a signoff word or phrase that indicates the end of the letter (e.g., sincerely, respectfully, yours truly, and others). After writing the complimentary close or valediction, leave four spaces blank for your signature, then have your full name printed.
How to Write an Effective Authorization Letter
Other than making sure that the letter has its vital components, there are other factors you need to consider when writing an effective authorization letter. In this section, we have outlined a step-by-step guide so you can write an authorization letter for whichever purpose it may serve you.
Step 1: Determine the Purpose of the Letter
Before you start writing the letter, you should first determine the purpose of the document. As previously mentioned, an authorization letter has different types—depending on the objective of the writer. It is essential to specify what your letter is for so that you will have a smooth-flowing process in writing its content. Presuming that you have already accomplished the task, the next to do is to identify the parties involved. In doing so, you may refer to the discussion above for you to determine the three parties more easily.
Step 2: Mind the Format
Although it is not necessary to write the letter with the help of a word processor, we highly suggest you do so. Typing a letter rather than handwriting it will make the document look organized and formal. As a result, the recipient won’t have a hard time reading the letter. When typing your letter, make sure to choose the best letter format—be it block, modified block, or semi-block style.
Step 3: Use the Right Tone
Aside from focusing on what you should write in the letter, you should also emphasize how you should write the message. This means that you have to use the right tone as you start writing the content of the document. Note that the writer’s tone influences the perception of the reader to the message. Since you are writing an authorization letter, being formal and professional will work best.
Step 4: Write the Body
Now that you are well aware of the crucial elements of a letter, select a standard business font and start writing the letter. Remember to be complete yet concise in writing the body of the letter. To recall, the information you should include in the content of your letter are the following: the name and duties of authorized, date of effectivity, the reason for authorization, and restrictions. In addition to that, it will also help to add a subject line between the salutation and the body of the letter. This way, it will be easier for the recipient to determine your intentions in writing the letter.
Step 5: Proofread and Sign
Just like any other document, it is important to check whether your authorization letter is free from any error. That is why you have to proofread and correct the mistakes you have incurred before printing the document out. Lastly, sign the document and send it to the addressee. When affixing your signature, we suggest that you make use of blue ink instead of the black one for it to be easily determined as the original letter. Also, you should keep a copy for yourself and the authorized person for documentation.
Humans as we are, we sometimes find it hard to entrust someone to represent us in our absence, mainly when the transaction or process entails important matters. However, it is not a guarantee that we will be able to present ourselves every time of need. Time will come when it might be necessary for someone to act on your behalf temporarily. Granting a person the authority to do so calls the need for you to write an authorization letter to the second party. Writing this type of letter will be easier if you have a full understanding of its purpose and elements.