The information below is taken from the 2011 printing of "Guide to Advancement", BSA Publication 33088 (SKU 614448), which replaced the former publication 33088 entitled "Advancement Committee Policies and Procedures". The Guide to Advancement is the official Boy Scouts of America source on advancement procedures.
188.8.131.52 Demonstrate Scout Spirit
The ideals of the Boy Scouts of America are spelled out in the Scout Oath, Scout Law, Scout motto, and Scout slogan. Members incorporating these ideals into their daily lives at home, at school, in their religious life, and in their neighborhoods, for example, are said to have Scout spirit. In evaluating whether a member has fulfilled this requirement, it may be best to begin by asking him to explain what Scout spirit and living the Scout Oath and Scout Law mean to him. Young people know when they are being kind or helpful, or a good friend to others. They know when they are cheerful, or trustworthy, or reverent. All of us, young and old, know how we act when no one else is around.
A leader typically asks for examples of how a Scout has lived the Oath and Law. It might also be useful to invite examples of when he did not. This is not something to push, but it can help with the realization that sometimes we fail to live by our ideals, and that we all can do better. This also sends a message that a Scout can admit he has done wrong, yet still advance. Or in a serious situation—such as alcohol or illegal drug use—understand why advancement might not be appropriate just now. This is a sensitive issue, and must be treated carefully. Most Scout leaders do their best to live by the Oath and Law, but any one of them may look back on years past and wish that, at times, they had acted differently. We learn from these experiences and improve and grow. We can look for the same in our youth.
Evaluating Scout spirit will always be a judgment call, but through getting to know a young man and by asking probing questions, we can get a feel for it. We can say however, that we do not measure Scout spirit by counting meetings and outings attended. It is indicated, instead, by the way he lives his life.