After Morais's death, Mendes led the school, but the financial position of the association became precarious, and Mendes did not have the resources to turn it around. In October 1901, a new organization was projected entitled the "Jewish Theological Seminary of America," with which the association was invited to incorporate. This arrangement was carried into effect April 14, 1902. The new organization was endowed with a fund of over $500,000, and was presented with a suitable building on University Heights by Jacob H. Schiff. It obtained a charter from the state of New York (approved Feb. 20, 1902), "for the perpetuation of the tenets of the Jewish religion, the cultivation of Hebrew literature, the pursuit of Biblical and archeological research, the advancement of Jewish scholarship, the establishment of a library, and the education and training of Jewish rabbis and teachers. It is empowered to grant and confer the degrees of Rabbi, Ḥazan, Master and Doctor of Hebrew Literature, and Doctor of Divinity, and also to award certificates of proficiency to persons qualified to teach in Hebrew schools." The reorganized seminary was opened on Sept. 15, 1902, in the old building of the Theological Seminary Association at 736 Lexington Avenue. A search was executed for a new president.