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It is unusual for funders to donate cash without expecting feedback from you.
Do make sure you read the terms and conditions as failure to report at stated times or to provide information required could lead to a clawback of funding. Obviously a position none of us would want to be in!
Before starting a project for a particular funder ensure you have appropriate data collection processes in place. Often a funder will help you with these or recommend suitable documents. There are plenty available but try and choose methods that are appropriate to your user group if possible. For example recorded interviews may be more appropriate for children or people with sight impairment.
The National Council for Voluntary Organisations (NCVO) has lots of useful information on reporting to funders.