Conflicts of interest that may arise from faculty consulting (professional services or advice to a client) are considered, with attention to issues such as time for consulting; competition with private practice; conflict of obligations; use of the university name, facilities, and resources; income considerations; and reporting and monitoring of consulting activities. Faculty consulting can serve as a vehicle for technology transfer, since faculty members, as active professionals and as authorities in specialties, have responsibilities to society and their professions. The following conclusions are offered: consulting should be accepted as a legitimate and valued activity; consultants should report their projected outside activities in advance to department heads whose approval should be required; a progress report should be required at the end of the project year or semester/quarter; a college or department committee should periodically review all reports and make recommendations; and the university should not seek information on contracted income for consulting. Appendices include a sample reporting form for consulting activities, a proposed policy on academic consulting, and an article on preventing conflicts of interest in government-sponsored research at universities. (SW)