AirDrop worked just fine for me in iOS 7 -- my iPhone and iPad were both set to "Contacts Only" and I could easily share content between them. Since upgrading to iOS 8 they only see each other when AirDrop is set to "Everyone," but I can still see friends' phones when on "Contacts Only." The same thing is happening now in Yosemite, where I can only share things with myself if AirDrop is set to "Everyone." All three devices are signed into iCloud.
Does anyone know how to get AirDrop working again like it did in iOS 7? Today's 8.1 update did not resolve the issue for me.