All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.
The practices of this woman are an innovation and against the Sunnah. There is no benefit in doing so, neither for the one who practices nor for the one for whom it has been done. The Prophet said: “Whoever performs an act which is not in accordance with ours [our religion], it will be rejected from him.” [Al-Bukhari and Muslim]
Moreover, gathering in the house of a dead person and preparing food are considered lamentation, which is prohibited in the Sharee’ah. Jareer ibn ‘Abdullah, may Allaah pleased with him, said: “We used to consider the gathering for the people of dead person and making foods for them after his death as wailing over him.”
Hence, you should exhort that woman not to gather people for the purpose of reciting the Quran and preparing food for them. What is proved from Sharee’ah is sufficient and enough to practice. It is prescribed in the Sharee’ah to supplicate and ask forgiveness of Allah for a dead person from the Hadeeth of the Prophet where he said: “Ask forgiveness for your brother and ask Allah to keep him firm since he is being questioned now.” It is also permissible to perform Hajj, ‘Umrah, and give alms on behalf of a dead person. Allah will convey the reward of the mentioned acts to the dead person. Many Muslim scholars also hold the opinion that presenting the reward of reciting the Quran to a dead person is also permissible provided one recites individually; i.e., without gatherings for it. They say that everyone who does a good act deserves its reward and possesses it like any other property, and then he may present his reward to others. Anyway, gathering for the recitation of the Quran in such manner as described in the question and preparing food is not permissible. On the other hand, Muslim scholars dislike eating from this food since eating it means supporting such innovated gatherings, cooperating in spreading their innovation, and approving of them. If they send that food to your home, we think that there is no harm in accepting it and using it, especially if you have made clear to them what should be practiced according to the Sunnah.
Allah knows best.