7.5% can be make or break and they were saying they were going to be laying people off and suspending services as a result
I disagree and in order to understand you need to understand the world of charity grant funding (which I do in the different context of medical research).
A CiN grant is funding to do a particular project - it comes with no overheads, so no contribution to your rent, business rates, electricity, gas etc etc etc. So if you fail to have a grant renewed, effectively you can do less - that project which would have been funded cannot now go ahead. And that would have been the case here, except for the 11th hour reprieve from the Scottish government. It would also have meant that one member of staff's role would have been redundant, but as this person would have been on grant funding he or she would have been on a fixed term contract anyhow aligned to the funding period.
But it isn't in any way an existential threat in the manner that a 7.5% reduction in income might be in a private company, specifically because the grant cannot pay for fixed costs. Bizarrely getting grants of this nature actually makes the fundamental financial situation of an organisation worse - as the grant covers only 'direct costs', but overhead costs (HR costs, payroll, services, estates costs, IT costs actually increase as you have more activity, and this increase in overheads has to be covered from other sources.
Now of course the 'mission' of an organisation, whether a rape support charity or a medical research organisation, means that we wants grants to allow us to do more 'stuff', but actually in financial terms, certainly in the short term, you'd be better off not winning that grant.
Had the Glasgow Rape Crisis not been bailed out by the Scottish government, they'd have made one person redundant, they'd have been able to do less (specifically what that grant application said they would have done), but there would be no existential threat - they'd still have been able to pay the rent, keep the lights on etc because the grant wouldn't provide any contribution to those things.