Is it permissible to play a part in establishing a venue for condolence gatherings and other occasions?

It is not prescribed in sharee‘ah for people to gather with
the family of the deceased to offer condolences. At the very least this
kind of gathering is makrooh, whether they gather in the house of the
family of the deceased or in these tents that they set up, or in a venue
for special occasions which is set aside for this purpose, and so on,
because that is an innovation that was not done by the earlier
generations. Ibn Maajah narrated that Jareer ibn ‘Abd-Allah al-Bajali (may
Allah be pleased with him) said: We used to think that gathering with the
family of the deceased and making food was a kind of wailing (for the
deceased).” Classed as saheeh by al-Albaani in Saheeh Ibn Maajah. 

If they add to that bringing a reciter to read the Qur’aan,
it is even more prohibited. 

The scholars of the Standing Committee for Issuing Fatwas
said: 

What some people do of setting up large tents and bringing
reciters to read Qur’aan, whether that is in return for payment or not, and
offering food on the forty-day anniversary of the death — all of these are
things for which we know of no basis in sharee‘ah; rather they are
innovations that have been introduced into the religion. And the Prophet
(blessings and peace of Allah be upon him) said: “Whoever introduces into
this matter of ours anything that is not part of it will have it rejected.”
End quote. 

Fataawa al-Lajnah al-Daa’imah,
9/136. 

It also says (9/73): 

Gathering when forty days have passed since the death of the
deceased is an innovation (bid‘ah), and reading Qur’aan or what is called a
khatmah for the deceased is a further innovation. It is haraam for the
reciters to eat the food that is offered to them or to take any fee for
their reading. Shaykh al-Islam Ibn Taymiyah narrated that there was
consensus among the scholars that taking a fee for merely reading Qur’aan is
haraam according to all the scholars, and there was no difference of opinion
among them concerning that. End quote. 

It also says (8/352): 

Spending on food that is made for those who come to offer
condolences and spending on setting up tents and the like is not
permissible, whether it is paid for from the wealth of the deceased or from
the wealth of anyone else. End quote. 

So it is not permissible to do any of these things or to help
in them, because it is a kind of cooperating in sin and transgression, and
Allah says (interpretation of the meaning):

“Help you one another in Al‑Birr and At‑Taqwa (virtue,
righteousness and piety); but do not help one another in sin and
transgression. And fear Allaah. Verily, Allaah is Severe in punishment”

[al-Maa’idah 5:2]. 

Their imposing a certain amount of money to be paid by every
individual in order to set up this venue is something that is not
permissible according to sharee‘ah. It is an objectionable action that
should be opposed and it is not permissible to help them in that. 

For more information please see the answer to question no.
14396 

And Allah knows best.