The Rev. Wendell Anthony, president of the local chapter, told the Detroit News "it's time for this word to be buried and put to rest."
The event was part of the NAACP national convention in the Motor City.
Despite the contention that African-American youth have taken control of the word, critics say it is still a derogatory term with no place in society.
Rappers and hip-hop artists told the newspaper changing American culture should be the focus of the NAACP's efforts; however Anthony said it was hoped the "funeral" in Detroit would provide a spark for the N-word's eventual demise.