The following are the passive skills a player will begin with based on the race (Elf, Dwarf, Man, or Hobbit) they select.

Elf

Agility of the Woods
Improved Agility.
Adds 15 to Agility

Fading of the Firstborn
Reduced Fate.
Subtracts 8 from Fate.

Sorrow of the Firstborn
Reduced Morale and Out of Combat Morale Regeneration – Elves feel things more deeply than the other races, and are more subject to sorrow.
Subtracts 20.0 from Max Morale
Subtracts 1.0 from Morale Regeneration in non-Combat.

Suffer No Illness
Improved resistance to Disease and Poison – Elves do not suffer illness.
Adds 1.0% to Disease Resistance
Adds 1.0% to Poison Resistance

Man

Diminishing of Mankind
Decreased Will – Men have weaker wills than the other races.
Subtracts 8 from Will.

Easily Inspired
Increased Morale Restoration – Men can be roused to action faster than the other races (heals heal for more on Men).
The Race of Man, when pressed, respond well to impassioned speeches that raise morale.

Gift of Men
Improved Fate – Men have the greatest destiny of all the Free Peoples.
Adds 15 to Fate

Strong Men
Improved Strength.
Adds 15 to Might.

Dwarf

Lost Dwarf-Kingdoms
Reduced Fate – The Dwarves’ time in Middle-earth is fading.
Subtracts 8 from Fate

Stocky
Reduced Agility – Dwarves are naturally less agile than the other races.
Subtracts 8 from Agility

Sturdiness
Increased Might and Vitality, improved Common damage mitigation – Dwarves are a sturdy race.
Adds 15 to Might
Adds 10 to Vitality
Adds 1.0% to Common Mitigation

Unwearying in Battle
Bonus to In-Combat morale and power regeneration, penalty to out-of-combat morale and power regen.
Adds 0.5 to Morale Regeneration in Combat
Adds 0.5 to Power Regeneration in Combat

Hobbit

Four Square Meals
Improved Eating – Hobbits get a bonus to food usage.
Adds 1.0 to Morale Regeneration in non-Combat

Hobbit Courage
Improved Fear Resistance – The slow-kindled courage of the Hobbit race.
Adds 1.0% to Fear Resistance

Hobbit Toughness
Improved Vitality – Hobbits are remarkably tough.
Adds 15 to Vitality

Rapid Recovery
Improved out-of-combat Morale Regeneration – Hobbits recover from trying times faster than other races.
Adds 1.0 to Morale Regeneration in non-Combat

Resist Corruption
Improved Shadow Mitigation – Hobbits have a great resistance to temptation.
Adds 1.0% to Shadow Mitigation

Small Size
Reduced Might – Hobbits lack the physical strength of other races.
Subtracts 8 from Might