Abstract This article examines the fundamental challenge of defining Jewish identity in the modern era and proposes a theological solution to the contemporary crisis facing Jewish religious institutions. Through theoretical analysis and institutional critique, Matt argues that traditional sociological categories—race, nationality, ethnicity, culture, and even religion—fail to adequately define the Jewish group, creating frustration for both religious and non-religious Jews. The author contends that while religion does not constitute the basis of Jewish identity, it provides the essential conceptual framework through the concept of B'rit (Covenant), which establishes Jews as the unique Covenant People Israel. The study identifies a critical separation between the Jewish People and the Synagogue in the modern period, resulting in diminished Covenant-consciousness and institutional ineffectiveness. Matt argues that contemporary synagogues have responded inappropriately by attempting to encompass all Jewish activities while abandoning meaningful membership standards, thereby losing their distinctive religious identity. The analysis reveals significant theological and practical diversity within all three major American Jewish denominations, suggesting current denominational boundaries lack coherence. The author proposes that synagogues must reestablish Covenant-consciousness as their central mission, implement rigorous membership standards requiring personal Covenant-commitment, and potentially realign into four rather than three denominational structures based on theological positions regarding Torah and halachah. The findings suggest that only through renewed focus on Covenant identity can synagogues fulfill their unique role within the broader Jewish community.