The generous sum is the largest charitable gift handed to the operation by an artist and will go towards the creation of the Taylor Swift Education Center, an exhibit and classroom complex set to open in 2014, reported E Online.
The two-story education center will sprawl across 7,500 square feet, with three classrooms and an exhibit space which will allow the museum to add a youth center.
According to reports, the addition will have a musical petting zoo along with a wet room where kids can paint and create posters for concerts along with other projects.
Swift has a long history of ties with the institute - she gave one of the earliest performances of her career in the building's plaza and signed her record contract at the site.