Flag-breaking is when a flag is folded up and hoisted to the top of the flagpole, where it unfurls.
"It's part sorrow that we got to this point but there is hope of making a fresh start."
Mr McDonald said just three items were on the meeting agenda: the current situation, future plan and a decision on a temporary home.
The association had talked with other Rotorua clubs about reciprocal rights but it would be up to the members to decide where they wanted to go in the interim. The longer-term plan remained to revive the RSA and find a new permanent home.
The various RSA clubs were currently scattered around the city, Mr McDonald said.
"It's a temporary measure and they'll come back but that is predicated on the basis we can house them. One area we can't provide for at the moment is bowls and the ballroom dancers."
It had been a difficult time, he said, but he had been buoyed by the members' support.
"It's a foundation; we're here for the community. So many in the community have connections. There are very few families in Rotorua who have not had someone serve overseas. The RSA is a cornerstone of the community."
The Rotorua Energy Charitable Trust has agreed to buy memorabilia from the RSA for about $80,000 and it will be kept at the Rotorua Museum until a new home is found. Borrowed items are being returned to families.
The building was on the market, Mr McDonald said, but the form of sale had not been decided.