Hello Jen. There are at least two meanings to "retiring" a flag. The first is when an organization's battle flag or parade flag is no longer fit for use and it is "laid up" in a church, state capitol, military HQ, etc. In Europe the practice was to place the flag in an honored place in a cathedral or home curch of the regiment, often "hangning from the rafters" so to speak, and let the banner decay over time. In the US our Civil War battle flags were most commonly returned to the respective state capitols and placed in glass display cases. While these cases were a much better environment than having the flags left exposed and haning from the staff, some states have done absolutely nothing with their ACW flags in 145 years and they have suffered from the sheer weight of the leaded silk fabric and chemical reactions from the paint and soil. Other states have treated these historic relics much more carefully of late by removing them from their staffs, documenting them with photos and measurements, and laying them flat in an archive with a carefully controlled atmosphere.

The other meaning to retiring a flag is the respectful destruction of an outdoor flag that has been worn by the elements. While some organizations have elaborate ceremonies, these are not necessary. A simple process of consigning the flag to the flames is all that is needed. And the barbaric practice of cutting the canton of stars from the striped field is absolutely to be avoided. The US Flag Code says the flag is to be destroyed, preferably by burining - not by dismembering it.