They do it by destroying them what's believed to be a dignified manner. They fold them and then burn them.
It's an annual tradition for the Scouts. Leaders say it's a good way to teach kids about our nation's history. "This is a way of teaching boys this is a respectful way to honor the flag" says John Sutherland, Asst. Scout Master, Troop 23. "It's also a way to teach them that a flag is something we should revere."
The Scouts burn the flags today because in 1818, Congress said a star would be added to the flag on July 4th and that meant all the old flags had to be retired.