What is the ruling on using funds from a family association, designated for assistance in times of hardship and joy, to provide financial aid or prepare a lunch for the family of the deceased?

Establishing associations for the purpose of charitable solidarity and aiding the needy is permissible, desirable, and has a basis in Islamic law. As for the expenditure of these funds, it is determined by the donors, and whatever they agree upon to place the funds in, so long as Islamic law does not prohibit it, is a valid expenditure and there is no harm in it. Regarding dedicating (charity) to the family of the deceased, it is desirable and the doer will be rewarded for it, and the sound Sunnah has indicated this.