by 
The Curious Bag
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An American flag will become damaged, stained and sun-bleached if left outside for extended periods of time. Once a flag has lost its luster, it is tradition to dispose of it properly and raise a new flag in its place. There are several ways to dispose of an old flag.
Burn
Burning an unserviced American flag is often regarded as the most dignified method of disposal and has become a national tradition.
Shred
Shredding an old American flag is an alternative to burning for individuals who reside in a location that makes the use of fire impossible or illegal.
Display
Displaying an unserviced American flag indoors as a wall decoration, within a frame, or inside a display case is a dignified manner of retiring a flag without destroying it.
Recycle
A flag can be recycled by giving it to a museum for display in a glass case, a theater school for use as a prop, or a mending service, which will attempt to repair it so that the flag is serviceable again.
Donate
Flags can be donated to the Boy and Girl Scouts of America, where they will be used in a flag ceremony and burned on behalf of the owners.
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