First-principle calculations of the electronic structure and magnetic interaction of C-Gd co-doped GaN nanowires have been performed. The room-temperature ferromagnetism in GaN:Gd nanowires is observed after the substitution of N atoms by C atoms. A p-d coupling is considered as the reason of the observed ferromagnetism. The striking feature is that such coupling is effected greatly by the position where the C atoms dope in. As the C-Gd distance increases this coupling decreases and the system won’t gain enough energy to stabilize the ferromagnetism.