Yes, it can be donated to an acreditted museum and you get to take a hefty tax break off the average market value of the gun. This is done via a Form 10.
I have some experience in this area, if interested.
Another, albeit distasteful option, (if the gun is worthy of parting out) is to demill the gun according to ATF specs and selling off the parts. In some cases, this could mean Thousands of Dollars.
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