When trying to send an email on behalf of a distribution group email address, you may get the following error:
Your message did not reach some or all of the intended recipients.
Subject: <Subject>
Sent: 7/06/2012 10:55 AM
The following recipient(s) cannot be reached:
'<email>' on 7/06/2012 10:55 AM
550 5.7.1 Client does not have permissions to send as this sender
To get around this, you will need to assign Send on Behalf of permissions on the distribution group.
You can assign either an individual user, or a group to send on behalf of the distribution group.
You can grant the send on behalf permission to all members of the same group, which can save on administrative effort over time if all group members should be allowed to send of behalf of the group they are in.
In Exchange Management Shell run the following command:
Set-DistributionGroup "Sales Team" -GrantSendOnBehalfTo "Sales Team"
See also This Post
To grant Send As permissions, check this post