I think it might be fitting to fold the flag and keep it in a trophy case if
your troop has one, especially if the flag has some sort of relationship with the troop.
Mentioned previously was the act of saying the pledge of allegiance before
commiting the flag to the flames. Nice touch! How about repeating the pledge
to a new flag after the old one has burned to ash. Sort of like welcoming the new flag or as a reminder that the old flag has gone but the pledge still goes on.