No, Facebook does not send a notification to your friend if you choose to report the photo. Instead...
No, Facebook does not send a notification to your friend if you choose to report the photo.
Instead of reporting the content to Facebook, you can now use the report links to choose to send a message to your friend directly, and ask them to remove it. This does not generate a report to Facebook, but it does give feedback to your friend who can remove something you don't like.