We report evidence that paramagnetism in CdSe QDs can be induced via manipulation of the surface chemistry. Using SQUID magnetometry and X-ray absorption spectroscopy, we demonstrate that the paramagnetic behavior of the CdSe QDs can be varied by changing the ligand end-group functionality of the passivating layer. Contrary to previous reports, no evidence for ferromagnetism was observed. The results suggest that the paramagnetism is induced via pi back-bonding between Cd 4d orbtials and ligands with empty pi* orbitals.