Cation-vacancy induced intrinsic magnetism in GaN and BN is investigated by employing density-functional theory based electronic structure methods. The strong localization of defect states favors spontaneous spin polarization and local moment formation. A neutral cation vacancy in GaN or BN leads to the formation of a net moment of 3 muB with a spin-polarization energy of about 0.5 eV at the low density limit. The extended tails of defect wave functions, on the other hand, mediate surprisingly long-range magnetic interactions between the defect-induced moments. This duality of defect states suggests the existence of defect-induced or mediated collective magnetism in these otherwise nonmagnetic sp systems.