Schatz fell ill. His doctors forbade him to sculpt, and he devoted what strength he had left to painting. After the closure of Bezalel he again tried to raise funds in the U.S., hoping to bring the institution that was once his pride and joy back to life. He embarked on a tour of American cities, hauling a sampling of Bezalel products and his own works in a trailer behind his car. In March 1932 he was hospitalized in Denver, Colorado. He wrote to his son: "Write to Mother often, but don't mention that I'll be having an operation [...] We must find the silver lining in this cloud. If people know that I am ill in bed they will help Bezalel. Write to everyone, to the journalists... and then perhaps I'll be helped."
On March 23, at the age of sixty-five, alone and far away from his family, from Jerusalem, and from the Bezalel School, Boris Schatz died on the operating table. His body lay in the hospital morgue in Denver for six months - his family had been left without a penny, and no official organization would take upon itself the arrangements for the body's transfer and burial in Palestine.