A Cased Flag
At right is a picture of a cased flag (this is a folded interment flag). Once the American flag is folded, it is considered cased and does not receive a salute.
Here is an example: the flag is brought down in the evening from a stationary flagpole. The team folds it, forms up and marches away (with one member holding the flag like the picture at right- point up or down does not matter) to store the flag in a specific room for the night. On the way back to the building, the team encounters cadets who stop and render a salute as the folded flag passes. While, saluting is not wrong, it is not necessary and communicates that you are unaware of published guidance regarding the flag.
A folded flag being carried to morning colors, or from evening colors, by a color detail is considered cased and not saluted.MCO 5060.20
Point up or down?
When carrying the cased (folded) American flag, tradition for the military services dictates as follows: Army and Air Force, Marine Corps, are usually point up; Navy and Coast Guard, are usually point down, but these are not hard-and-fast rules, just tradition.
A Cased Color
Just as a cased flag does not receive a salute, a cased color does not render or receive a salute.
Almost every team in the JROTC community follows the example that is pictured here. Thank you to the MacArthur High School cadet who allowed me to use this picture and who was truly interested in this issue.
Why do teams dip the cased color? Because a salute from a color team involves dipping non-national colors and this is something that one would not really think twice about. None of the service drill and ceremonies manuals (you can find them all here) discuss this because it has never been and is never an issue for the military. It is JROTC drill meets that create issues like this.
When we bring cased flags and colors into a single discussion, we can then make logical decisions. Dipping a cased color is not proper. Cased colors never receive a salute, so it follows that they would not render a salute. It’s like dipping a bare flagstaff- there is no reason to do so.
“Individuals or units passing or being passed by uncased Colors out of doors render honors.”T.C. 3-21.5 (emphasis mine)
The Furled Flag
Never carry or pose with a furled or partially furled flag. When the flag is removed from the case, it is immediately unfurled (unwrapped from the staff). When a flag is furled (wrapped around the staff), it is immediately cased.
So now what?
Spread the word. Educate as many people as possible.
See also: How to Fold the Fringed American Flag