Once your American flag has become worn, it is important to dispose of it in a respectful manner.
A flag may be buried.
Should you choose this method of retirement, you must fold the flag in a ceremonial triangle and place it within a sturdy wooden box. The box must then be buried several feet underground.
A flag may be burned.
You must also fold the flag in the ceremonial triangle and place it in a fire. No part of the flag may touch the ground. The flag must be burnt completely and the ashes buried. Never burn a flag that is made of nylon or polyester; the smoke will contain harsh chemicals.
A flag may be retired.
You may also choose to retire your flag by putting it in a flag retirement box. These boxes are managed by local organizations such as: The American Legion, Veterans of Foreign Wars, Girls Scouts of the USA, or Scouts BSA. If you don’t know where to find a collection box, contact one of these local groups for further information.
How to Fold and Retire the American Flag
The United States flag must always be treated with honor and respect as they represent those who fought and sacrificed their lives for the rights and freedoms of the American people. In 1976, Congress amended the Flag Code to include the statement that the U.S. flag is a living entity and, as such, has all the rights thereof, including the right to exist and expire with dignity.
Flags retired with Scouts BSA are generally burned in a reverent ceremony several times a year. If you are interested in reading the script used by many troops, you can take a look here: http://usscouts.org/ceremony/flagret1.asp
Some Scout BSA troops will recycle the flag.
To do this, the flag must be cut. The appropriate way to cut an American flag is demonstrated in the illustration.
United States Flag Code (section 8K)
The flag, when it is no longer a fitting emblem for display, should be destroyed in dignafied way, preferably by burning.
Organizations that will Dispose of Your Flag for You
The American Legion
Veterans of Foreign Wars
The Boy Scouts of America
The Girl Scouts of the United States of America
Other Methods of Flag Disposal
The U.S. Flag can also be disposed of by burying, shredding, or recycling. For nylon flags, recycling is preferable, since it is more environmentally conscious.