Horace Mann School for the Deaf in Boston was disqualified from the contest because many of the votes were from Internet pranksters who thought it would be funny for a school for the deaf to win tickets to a live concert.
The Boston Globe reports that instead, Swift and contest sponsors will donate a combined $50,000 to the school, and VH1's Save the Music program will donate $10,000 in musical instruments.
Swift says every student at the school will receive a ticket to her next local concert.
Principal Jeremiah Ford tells the newspaper: "Are we the winner? Absolutely."