it varies by item... some items just always drop X morale per battle, requiring suppression every Y battles to use.
Some items will have more exotic rules. For example a certain hammer of something will gain 2 morale if your entire army is dwarfs? (it said gnomes but it was a very bad babblefish translation form russian manual)., gain 1 if at least one of your units is a dwarf, lost 5 if you have dwarfs fighting dwarfts, or lost 10 if you don't have any dwarfs and fight dwarfs...
Others merely check to see if you have, or don't have, memebers of the race in your army.
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