A series of Co-doped SnO2 nanoparticles have been synthesized by the co-precipitation route. Different amounts of surfactant have been used in order to study the effect of surfactants (CTAB) on the magnetic and optical properties. Structural analyses reveal that Co dopants are substituted into rutile SnO2 nanoparticles without forming any secondary phase. The increase of the surfactant promotes the adsorption of organic molecules on the surfaces of nanoparticles. Meanwhile, both the ferromagnetism and the orange emission drop progressively. The dependence of ferromagnetic properties on the surfactant concentration could be explained based on the bound magnetic polaron, where the carriers are provided by oxygen vacancies. XANES spectra reveal that the electrons transfer from Co 3d bands to the surfactant ions. Such electron-transfer process suppresses the formation of oxygen vacancies and leads to the decline of the ferromagnetism and optical emission. (C) 2011 Elsevier B.V. All rights reserved.