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What is the best way to produce labels with the following criteria:

every individual (in this case, students) assigned as a participant to a ministry

only one label per household, therefore, combining addressee names for same household?

Excellent question! I would recommend using M1401L: Activity Pre-Assignment Roster by Activity Schedule (Avery 5160). This report is designed to print Avery 5160 labels for individuals that have a participant assignment to a particular activity. It will sort the individuals by Activity Group, Room-Location, and Activity Schedule.

 The first filter on this specific report is 'Report Type'. This allows you to choose to list each individual on a separate label or group individuals within a household on the same label.