If it isn't an all guild raid DKP is bad too because it doesn't allow the PuGs an equal shot at gear when that's probably the reason they agreed to help out in the first place.
For all guild runs I think Loot Council is the best idea too, as long as the council is balanced and has some objective rules laid down too.
What my guild does is a tiered Loot Council system. We link the item people are to put in for, then whoever wants that item links their current item and a 1, 2, or a 3. 1 = Offspec, 2 = Upgrade of any Magnitude, 3 = OMFG WTF I NEED THIS PIECE OF GEAR SOOOOO BAD. Basically, a 3 is the equivalent of bombing all your DKP, we weight if someone got something contested on a 3 very heavily for future pieces of loot. If someone puts in a 3 in on everything we stop weighting the 3 as a 3 and put them on the level of a 2.
When distributing loot we look at the following (roughly in order, but depending on circumstances we rate some things higher than others).
Who's gotten gear last/# of 3s bombed
Who's gotten the most of the highest level gear (right now 258)
Who's gotten more contested gear (aka they weren't the only person that wanted it and it wouldn't have gone to DE or Offspec if they had picked it up)
Who the upgrade is better for
I don't like dkp because what usually happens is X person stocks up their DKP for Uber_Loot1. Y person methodically picks up gear upgrades with a little bit of DKP and is your best DPS, and most attendance, and deserves Uber_Loot1. X person bombs all DKP on Uber_Loot1 and because X person horded up all their DKP rather than upgrading that blue wand, X person has more DKP than Y person, and even though Y person deserved Uber_Loot1, Y person did not get Uber_Loot1.
This actually happened in my old guild, we had a rogue with Chromatically Tempered Sword in his main hand and friggin' Trash Blade in his offhand.