What is the ruling on reciting the Qur'an for the deceased and offering food to the reciter, whether or not he takes a material recompense?

The scenario mentioned in the question – gathering to receive condolences – is a forbidden innovation (bid'ah), whether it is used as a means of livelihood or not. It is not permissible for the deceased's family to provide food for those who gather with them, because that is among the newly invented innovations that contradict the guidance of the Prophet (peace be upon him). Furthermore, gathering at the deceased's family's home is not permissible.

Jarir ibn Abdullah al-Bajali (may Allah be pleased with him) said: "We used to consider gathering at the deceased's family's home and preparing food after his burial as a form of wailing (niyaha)."

It is forbidden to assist in this by attending or accepting the food offered therein.