Stephanie Mullaley has been denied unemployment benefits after an Iowa judge ruled her GoFundMe scheme showed “wilful or wanton disregard” for her school district.
Mullaley, a long-term substitute teacher at Clinton Community School District, was fired on May 29 following allegations that she pressured high school students into donating to a personal fundraiser by offering extra credit in exchange. Administrative Law Judge Duane Golden delivered the ruling during an unemployment hearing where he uncovered the full scope of her actions.
Judge Golden told the Iowa Capital Dispatch that Mullaley “promised high school students in her class that they would receive extra credit toward their grade in her class if they donated to her GoFundMe account,” He added that “students felt pressured to donate money to her personal GoFundMe page.”
The fundraiser, now deleted, sought $1,800 for an Ecuador trip Mullaley planned to take with her husband. The post described what she called her “personal educational goals,” stating the couple had been offered “a unique opportunity to travel to Ecuador.” She would be “interpreting for a medical mission team (and) helping bridge language barriers so that care and compassion can reach those who need it most,” while her husband would be “assisting the team in any way he can.”
Proceeds were earmarked for “transportation including flights, buses and boats, food and hotel accommodations,” according to the post.
Mullaley promoted the fundraiser on Facebook, where she wrote: “Nick and I are embarking on a journey this summer with a medical mission group. This was only a thought a year ago, and it became real when we got an official invitation end of 2025.”
She continued: “Feels like a blessing to have an opportunity to serve a community in need of medical service and utilize my skills and serve. God put this in place for us, and we’re answering it. Hope to have your support, and if you can’t financially, we understand and just keep us in your prayers.”
By the time the page was removed, Mullaley had raised only $140 across six donations ranging from $5 to $50. Some of those contributions are believed to have come from students who felt pressured into donating.
The case came to light when Mullaley applied for unemployment benefits after her firing. Judge Golden’s investigation into her conduct led him to conclude she had violated the district’s ethics policy, making her legally ineligible for unemployment compensation in Iowa.
The incident represents a striking breach of professional boundaries, with a teacher leveraging her grading authority to solicit personal financial support from minors in her classroom. The small sum raised—barely eight percent of her goal—suggests limited student participation, though the pressure tactics themselves proved sufficient to cost Mullaley her position and any safety net.
Mullaley had been working as a full-time, long-term substitute at Clinton High School when she implemented the extra-credit-for-donations arrangement.