Late Bishop Sebastian Valloppilly did yeoman service to the educational development of the people of Malabar irrespective of caste and creed. A host of schools and other educational institutions were established in areas where the light of education has not penetrated. Therefore it behaves the people of Malabar to remember his contribution. As a preliminary step in this direction Bishop Sebastian Valloppilly Foundation was instituted on the occasion of his first death anniversary, at the initiative of the college with its headquarters at Nirmalagiri College founded by him in 1964. The aim of the foundation is to serve the people of Malabar in particular and of Kerala at large in the field of education.

The first death anniversary and the inauguration of the foundation were held on 29 March 2007 in the auditorium, Nirmalagiri College. It was inaugurated by Dr.P.Chandramohan, Vice-Chancellor, Kannur University. A number of eminent personalities, scholars, philanthropists, social workers, educationalists and administrators were gathered to grace the occasion.