بسم الله الرحمن الرحيم
It is baseless to distribute food to the relatives and arrange Fatiha Khawani on the third day of death. It is not proved from Shariah, so it should be given up. There is no specified day, date and method for isal-e-sawab. Avoiding the prevalent innovations of Fatiha, collective Quran Khawani, Tija, Daswan, Beeswan, Chahlum etc, one may send the reward to the dead by reciting the holy Quran, doing sadaqah and feeding the poor and needy ones as per the Shariah method.
Allah knows Best!
Darul Uloom Deoband
This answer was collected from the official ifta website of Darul Uloom Deoband in India.