Old maid wrapping up nonsense project (8)
I believe the answer is:
protrude
'project' is the definition.
(I've seen this before)
'old maid wrapping up nonsense' is the wordplay.
'old maid' becomes 'prude' (I've seen this before).
'wrapping up' is an insertion indicator.
'nonsense' becomes 'rot' (I've seen this before).
'prude' placed around 'rot' is 'PROTRUDE'.
(Other definitions for protrude that I've seen before include "Get through" , "Stick outwards" , "Point out" , "Stick out, project from a surface" , "Jut out" .)