How do I organize contacts on a list by household?

Or vice versa?

Here's the context:

I want to populate a campaign with all individuals whose households gave over $500 in the past year. Then I need to make a report that organizes those individuals by household so that I can send out a special appeal without duplicates. In other words, I don't want to send two or three letters to the same household if the household members give as one unit.