Video from inside the donation center shows a worker examining a hole at the bottom of the plush reindeer on Feb. 6. In a matter of seconds, three bags containing a powered substance fell out.
"I kind of wanted to feel around to see if I could fix it so I could still sell it, and I felt a bag," the charity worker said.
The charity alerted the Los Angeles Police Department, who then took the toy for examination.
Officers said the powdery substance resembled cocaine bundled in Saran plastic wrap
A source, who did not want to be identified, said the stuffed animal was among a variety of "weird" items delivered to the charity that day.
"I was like, 'This person must have been rich or famous or whatever,'" the person said.
The incident remains under investigation.