Looking at my copy of the Insignia Guide, it states:
Special Flag Decorations
Gold stars (memorial). Gold stars may be affixed to the unit flag indicating members of the unit who died in the service of their country. The stars should be placed along the staff edge of the flag, parallel to the staff, with the bottom star 6 inches from the staff edge and 6 inches from the bottom edge; subsequent stars to be placed proportionately on that line, up to the place assigned to the veteran insignia, No.�11117.
I would interpret "members" of the unit to include any registered member, be it Scout or Scouter. How many troops, teams, packs, or crews have Scouters who are Guardsmen, Reservists, or Active Duty? Not to mention the Far East, Direct Service, or Transatlantic Councils. Is the loss of an Assistant Scoutmaster or Scoutmaster any less than of a former Scout?