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One of the best training experiences you can get is to share time with another pilot.  It's a great way to build your flight time while sharing the costs with another pilot.  Generally, whoever is sitting in the left seat is paying for the flight time on that leg.

Scenario:

Jim & Ted are going on a cross country from ABC to XYZ.  Jim will fly the first leg in the left seat while Ted is the safety pilot.  Ted will fly the return leg in the left seat while Jim is the safety pilot.  Here's a look at Ted's logbook.

The first line represents Ted sitting in the right seat for Jim for a 2.1hr cross country flight, 1.8 of that was PIC for Ted while Jim was under the hood.  Jim can log PIC as the sole manipulator of the controls, while Ted (as safety pilot) can log PIC because he was acting as the PIC (he has the responsibility for the safety of the flight) for a flight that requires more than one crew member.  (FAR 61.51) 

Question:  Why doesn't Ted get credit for cross country time? 
Answer:  He does not log cross country for that leg because§61.1(b)(3)(ii)(B) defines cross country time as time acquired during flight "That includes a point of landing that was at least a straight-line distance of more than 50 nautical miles from the original point of departure." If Ted did not perform the landing at the destination, then Ted doesn't get credit for cross country time.

Question:  Why doesn't Ted get credit for the full 2.1 hours of the flight?
Answer: While Jim was under the hood, Ted was a required crewmember and can log PIC time during that time which Jim was under the hood.  Ted was not a required crewmember during that time Jim was not under the hood and therefore can't log PIC.

The second line represents Ted sitting in the left seat with Jim as a safety pilot for a 2.1hr cross country flight, 1.8 of that was under the hood.  Ted performed 3 ILS approaches to runway 27 at ABC airport.  Ted can log PIC as the sole manipulator of the controls, while Jim (as safety pilot) can log PIC because he was acting as the PIC (he has the responsibility for the safety of the flight) for a flight that requires more than one crew member.  (FAR §61.51)

Can they both log PIC like this?  Yes!  That's the reason you'd even get involved in being a safety pilot.  You want to build your PIC time towards your commercial (250hrs for airplane and 150 hrs for helicopter).  We don't do this for SIC time.

Safety Pilot is Required, Qualifications of  (FAR §91.109)
FAR §91.109 says a safety pilot is required for simulated instrument flight (as a required crew member) and that the safety pilot must have:

• a valid private pilot certificate §91.109(b)
• appropriate category & class ratings §91.109(b)
• a current medical certificate §61.31(d)(1); § 61.51(e)(1)(iii), § 61.51(f)(2), § 61.3(c); § 61.56(c), § 61.57(c), & § 61.3(c)
• and meet all the other pilot-in-command currency requirements §61.3. 

Instrument flight time may be logged… (§61.51)

• During the time the flight is conducted solely by reference to instruments under actual or simulated IFR conditions.  If simulated IFR conditions, you must log the location and type of each instrument approach and the name of the safety pilot or CFII.
• By an instrument flight instructor (CFII) when acting as an instrument flight instructor in actual instrument weather conditions
• Actual Instrument can not be undertaken without an Instrument Rated PIC or CFII thus cannot be logged when using a safety pilot.
  

Safety Pilot Tips

• Be sure that safety pilots are engaged in good collision avoidance techniques at all times during these operations.  See collision avoidance section for further details.
• Have your safety pilot make announcements on CTAF frequencies during the critical phases of your approach.
• Be sure that your approach does not conflict with prevailing traffic. 
• Remember right of way rules (lower aircraft has right of way FAR 91.113) and be sure to announce your attentions on CTAF as “low approach only, full stop” etc.
• When reporting position on CTAF, consider non-rated pilots lack of knowledge about outer markers and other approach details.  Announce positions as 5 mile final rather than outer marker inbound on the ILS.
• Do not attempt practice approaches to towered airports without contacting approach control as you might conflict with other approaches in progress.  Do not enter Class B, C, D airspace without a clearance.
• Safety pilots work with the PIC to maintain situational awareness, share decisions to operate the aircraft safely, and checks the PIC.
• Acting as a safety pilot is the beginning of additional responsibility as a pilot.  Its a sign of your ability to accept higher levels of responsibility in multi-pilot cockpits.  Such roles include first officer and flight instructor. 
  
• When you are acting as safety pilot, your primary responsibility is to be visual with your eyes outside the cockpit 97% of the time.  The other 3% of your time should be monitoring the pilot flying (PF).  As such, it is your responsibility to challenge flying that doesn't meet standards such as off heading, off altitude, off course, etc.  Use the call-outs in the related article:  CRM in Training.
  

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