We report observation of ferromagnetic (FM) ordering in organic semiconductors, namely regio-regular poly (3-hexyl thiophene) (RRP3HT) and 1-(3-methoxycarbonyl)propyl-1-phenyl-[6,6]-methanofullerene (PCBM), in the temperature range of 5-300 K in addition to magnetoresistance (OMAR) observed in the diodes made from the same materials. Particle induced x-ray emission spectroscopy confirms the presence of dilute magnetic impurities in the materials mainly as residues from the synthesis process. However, upon blending these two materials with FM signal, the FM ordering is suppressed by a huge paramagnetic (PM) signal indicating ground state charge transfer formation in the blend. Together with the magneto-transport studies, these results indicate that OMAR response is observed in a device only when the corresponding active materials are FM. In the diodes with P3HT:PCBM complex, that as a blend shows PM response, OMAR vanishes almost completely. We propose that ferromagnetism in the active material can have important correlation with the OMAR response in the diodes.