We employ x-ray spectroscopy to characterize the distribution and magnetism of particular alloy constituents in (Ga,Fe)N films grown by metal organic vapor phase epitaxy. Furthermore, photoelectron microscopy gives direct evidence for the aggregation of Fe ions, leading to the formation of Fe-rich nanoregions adjacent to the samples surface. A sizable x-ray magnetic circular dichroism (XMCD) signal at the Fe L-edges in remanence and at moderate magnetic fields at 300 K links the high temperature ferromagnetism with the Fe(3d) states. The XMCD response at the N K-edge highlights that the N(2p) states carry considerable spin polarization. We conclude that FeN{delta} nanocrystals, with delta > 0.25, stabilize the ferromagnetic response of the films.