(k) The flag, when it is in such condition that it is no longer a fitting emblem for display, should be destroyed in a dignified way, preferably by burning.

Now that is the law governing any answer to your question. As you can see the ceremony its self is wide open for interpretation. The key work is “Dignified”, and while it is a subjective term I think most reasonable people can recognize “Dignified” when faced with something less than dignified. When I want to retire a flag I fold it properly and deliver it to the local VFW Hall. They hold it until they have several and then destroy it in accordance with the Code.

The complete code is available through several sites, I used the one below. It isn’t a long involved document and can be read in its entirety in a few minutes.

Most people in the US know very little about what is proper and what is improper when relating to the flag. For example: Did you know there is a flag that can be flow above the American Flag? Well there is, but no hints on the answer. If you want to know read the Code.

Sorry about being so wordy. I am retired Military and take the treatment of the flag very seriously.